Complex Computer Ltd. had a December 31 year-end. Complex Computer Ltd. completed the following transactions: 2018 February
Question:
Complex Computer Ltd. had a December 31 year-end. Complex Computer Ltd. completed the following transactions:
2018
February 01: Paid $3,000,000 plus $100,000 in legal fees, pertaining to all assets purchased, to acquire the following assets:
Complex Computer Ltd. used the straight-line amortization method using days as the basis.
March 01: Purchased a van for $60,000 cash. Complex Computer Ltd. determined that the estimated useful life of the van was 5 years with no residual value.
March 01: Complex Computer Ltd. paid $4,000 cash to paint the company's logo on the van.
June 01: Complex Computer Ltd. paid $65,000 cash for annual maintenance work done on the equipment.
December 31: Complex Computer Ltd. recorded amortization on its assets.
2019
July 01: Complex Computer Ltd. sold the van for $40,000.
December 31: Complex Computer Ltd. recorded amortization on its assets.
Required:
Record the above transactions in a general journal. Provide explanations. Round all amounts to the nearest dollar. Complex Computer Ltd. used the straight-line amortization method using days as the basis
Show the balance sheet presentation of the assets at December 31, 2019
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura