Megatron Inc owns a television station in the interior of British Columbia. Its year end is June

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Megatron Inc owns a television station in the interior of British Columbia. Its year end is June 30. The company completed the following transactions:
2014
Apr. 1 Paid $2,175,000 plus $75,000 in legal fees (pertaining to all assets purchased) to purchase the following assets from a competitor that was going out of business:
Estimated Useful Life Appraised Value Estimated Residual Value Asset Land $600,000 960,000 Buildings Equipment 30 years

Megatron Inc. plans to use the straight-line amortization method for the building and for the equipment.
May 1 Purchased a mobile broadcast unit truck with a list price of $295,000 for $245,000 cash. It is expected that the truck will be used for seven years and driven a total of 200,000 kilometres; it is then expected to be sold for $55,000. It will be amortized using the UOP method.
3 Paid $10,000 to paint the truck with the station's colours and logo.
Jun. 30 Recorded amortization on the assets. The mobile unit had been driven 12,500 kilometres since it was purchased.
Dec. 30 Megatron Inc. paid $25,500 to Maxwell Maintenance for work done on the equipment. The job consisted of annual maintenance ($1,500) and the addition of automatic controls ($24,000) that allow the equipment to remain useful for another six years and increase its expected residual value by $10,000.
2015
Jun. 1 Sold the mobile unit truck for $200,000. The truck had an odometer reading of 82,000 kilometres.
30 Recorded amortization on the assets.
Required
1. Record the above transactions of Megatron Inc. Round all amounts to the nearest dollar.
2. Show the balance sheet presentation of the assets at June 30, 2015.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Accounting Volume 1

ISBN: 978-0132690096

9th Canadian edition

Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

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