question archive Your company had the following equipment transactions: 1
Your company had the following equipment transactions: 1
Subject:AccountingPrice: Bought3
Your company had the following equipment transactions: 1. Purchased equipment on January 1, 2019 for $25,000 in cash. Estimated life = 5 years, estimated salvage = $1,000. Method of Depreciation - straight line. 2. Used the equipment in 2019 3. Used the equipment in 2020 4. On July 1, 2021, changed the estimated life from a total of 5 years to a total of 8 years. 5. Used the equipment in 2021. 6. Used the equipment in 2022. 7. Sold the equipment on January 1, 2023 for $17,000 in cash. Questions (please show and label your work) 2. Prepare the journal entries for the events above? b. What is the book value of the equipment on December 31, 2021? Your company had the following patent transactions: 1. Purchased a patent on October 1, 2019 for $80,000 in cash. Estimated life = 8 years, estimated salvage value = $zero. Method of amortization = straight line. 2. Used the patent in 2019 3. Used the patent in 2020 4. Early in 2021, paid a lawyer $30,000 to sue another company which was copying your product. You won the case, so the other company must stop copying your product. Questions (please show and label your work) . Prepare the journal entries for the events above? b. Show and label the changes in net income for 2019, 2020 and 2021 because of the above information
