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

Answer rating: 100% (QA)

2018 1 February 01 Debit Assets including legal fees 3100000 Credit Cash 3100000 2 March 01 Debit Va... View the full answer