For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on
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For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an addition or a subtraction Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category.
Recorded $ of depreciation expense.
Sold land that had originally cost $ for $ in cash.
Recorded a $ payment for the cost of developing and registering a patent.
Recognized periodic amortization for the patent in part c using the maximum statutory useful life.
Capitalized $ of cash expenditures made to extend the useful life of production equipment.
Expensed $ of cash expenditures incurred for routine maintenance of production equipment.
Sold a used machine for $ in cash. The machine originally cost $ and had been depreciated for the first two years of its fiveyear useful life using the doubledecliningbalance method. Hint: You must compute the balance of the accumulated depreciation account before you can record the sale.
Purchased a business for $ in cash. The fair values of the net assets acquired were as follows: Land, $; Buildings, $; Equipment, $; and LongTerm Debt, $
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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