Metrocity Inc. owns a small television station in Nova Scotia. Its year-end is June 30. The company

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Metrocity Inc. owns a small television station in Nova Scotia. Its year-end is June 30.

The company completed the following transactions. Prepare all appropriate journal entries. SHOW ALL CALCULATIONS . Round to the nearest dollar.

April 1, 2020 - Paid $2,175,000 plus $75,000 in legal fees (pertaining to the purchase of all assets) to purchase the following assets from a competitor that was going out of business:

May 1, 2020 - Purchased a mobile broadcast unit truck with a list price of $295,000 for $245,000 cash. Paid $10,000 to paint the truck with the station’s colours and logo. It is expected that the mobile 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 depreciated using the UOP method.

June 3 -Paid $10,000 to paint the truck with the station\'s colours and logo. Assume the truck has not been put into service yet.

June 30 , 2020 - Record depreciation on all the assets. The truck had been driven 12,500 kilometres since it was purchased.

Dec 31, 2020 - 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 the next six years and increase its expected residual value by $10,000.

30 Recorded amortization on the assets. Next, record the amortization of the equipment. (Hint: Compute the amortization as at December 30 before the addition.

Then compute the yearly amortization for the remaining useful life.) (Do not round intermediary calculations. Only round your answer to the nearest dollar.)

Debit Credit Date Jun. Journal Entry 2021 Accounts 30 Amortization Expense-Equipment Accumulated Amortization— Equipment