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bixtya [17]
3 years ago
8

Crane Company purchases a patent for $161,900 on January 2, 2022. Its estimated useful life is 5 years. (a) Prepare the journal

entry to record amortization expense for the first year. (Credit account titles are automatically indented when amount
Business
1 answer:
ArbitrLikvidat [17]3 years ago
8 0

Answer:

Explanation:

The journal entry is shown below:

Amortization expense - Patent A/c Dr $32,380

     To Patent A/c $32,380

(Being amortization expense for the first year is recorded)

The computation is shown below"

= Purchase cost of patent ÷ estimated useful life

= $161,900 ÷ 5 years

= $32,380

For the intangible assets, the amortization expense is considered, not the depreciation expense and the same is to be taken.  

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Answer:

Debit Depreciation Expense, $960; Credit Accumulated Depreciation, $960.

Explanation:

Depreciation is an expense recorded in the income statement. An expense account is created to record annual depreciation in a given year. Since depreciation is an expense,  an increase is captured by debiting the account. The depreciation amount will be credited to the accumulated depreciation account as per the rules of double-entry accounting.

Accumulated depreciation is the natural contra entry account for the depreciation account. The account is used to recorded accumulated depreciation up to the current period. Accumulated depreciation account is because it reduces the book value of the asset.

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Banks lend money from saving accounts to people who need loans 
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On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life with a residual value of $1
UkoKoshka [18]

Answer:

a. Depreciation expense per hour:

= (Cost - salvage value) / Expected operating hours

= (228,000 - 16,000) / 26,500

= $8 per hour

b. First year depreciation:                                      Second year depreciation:

= 1,250 * 8                                                                  = 2,755 * 8

= $10,000                                                                   = $22,040

Third year depreciation:

= 1,225 * 8

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Journal entries

Date                    Account Title                                    Debit                 Credit

June 30, Year 1 Depreciation                                     $10,000

                          Accumulated Depreciation                                       $10,000

Date                       Account Title                                   Debit                 Credit

June 30, Year 2     Depreciation                                 $22,040

                              Accumulated Depreciation                                  $22,040

Date                       Account Title                                   Debit                 Credit

June 30, Year 3     Depreciation                                 $9,800

                              Accumulated Depreciation                                  $9,800

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Answer:

Devil’s advocacy

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Devil’s advocacy is a thorough analysis of a preferred alternative to check and test its strengths and weaknesses before being implemented with the purpose of identifying all the faults that might make the preferred alternative unacceptable.

This method helps in determining the dangers of any action taken by an individual or group of persons.

8 0
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Answer:

either this is a stupid question or this isnt asked right hahaha, based on the basic info here, 51??

Explanation:

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