Prepare the necessary journal entries to record the following transactions in 2014 for the Blue Spruce. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entriesIf no entry is required, select "No Entry" for the account titles and enter O for the amounts) Discarded old store equipment that originally cost $28,500 and had a book value of $5.928 on the date of disposal Depreciation on the equipment has already been recorded for the current year Jan. 11 Sold a delivery truck for $9,576, The delivery truck originally cost $60,420 and had accumulated depreciation of $52,440 on the date of sale. The depreciation on the truck has already been recorded for the current year. Mar Straight-line depreciation is recorded for the first quarter of 2014 on equipment with a 4-year useful ife that was purchased on January 1,2012 for $31.236 with an estimated salvage value of $3.876. Mar. 31 May Incurred and paid for $638.400 of costs to develop a new patent. The patent has a legal life of 20 years 10 Sept. Paid the corporate attorney $73,200 to register the new patent (see May 10). 30 Acquired RT Sheridan, a small parts company, for $353.400 cash. RT Sheridan had net assets totaling $1.003.200, net liabilities totaling $741.000 Nov. Dec. Recognized amortization for the fast quarter of 2014. 31
Prepare the necessary journal entries to record the following transactions in 2014 for the Blue Spruce. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entriesIf no entry is required, select "No Entry" for the account titles and enter O for the amounts) Discarded old store equipment that originally cost $28,500 and had a book value of $5.928 on the date of disposal Depreciation on the equipment has already been recorded for the current year Jan. 11 Sold a delivery truck for $9,576, The delivery truck originally cost $60,420 and had accumulated depreciation of $52,440 on the date of sale. The depreciation on the truck has already been recorded for the current year. Mar Straight-line depreciation is recorded for the first quarter of 2014 on equipment with a 4-year useful ife that was purchased on January 1,2012 for $31.236 with an estimated salvage value of $3.876. Mar. 31 May Incurred and paid for $638.400 of costs to develop a new patent. The patent has a legal life of 20 years 10 Sept. Paid the corporate attorney $73,200 to register the new patent (see May 10). 30 Acquired RT Sheridan, a small parts company, for $353.400 cash. RT Sheridan had net assets totaling $1.003.200, net liabilities totaling $741.000 Nov. Dec. Recognized amortization for the fast quarter of 2014. 31
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 19E: After Bunker Hill Assay Services Inc. had completed all postings for March in the current year...
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Prepare the necessary journal entries to record the following transactions in 2014 for the Blue Spruce. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no
entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Discarded old store equipment that originally cost $28,500 and had a book value of $5.928 on the date of disposal
Depreciation on the equipment has already been recorded for the current year.
Jan.
11
Sold a delivery truck for $9,576, The delivery truck originally cost $60,420 and had accumulated depreciation of $52,440
on the date of sale. The depreciation on the truck has already been recorded for the current year.
Mar
6.
Straight-line depreciation is recorded for the first quarter of 2014 on equipment with a 4-year useful life that was
purchased on January 1, 2012 for $31.236 with an estimated salvage value of $3.876.
Mar.
31
May.
Incurred and paid for $638.400 of costs to develop a new patent. The patent has a legal life of 20 years
10
Sept:
Paid the corporate attorney $73.200 to register the new patent (see May 10).
30
Nov.
1.
Acquired RT Sheridan, a small parts company, for $353.400 cash. RT Sheridan had net assets totaling $1.003.200, net
liabilities totaling $741.000.
Dec.
Recognized amortization for the fast quarter of 2014.
31
Date
Account Titles and Explanation
Debit
Credit
Jan 11 t
Mar. 6
Mar. 31
May 10
Sep 30
Nov 1
Dec. 31 :
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