The following selected transactions for Leaf Industries, operating in New Brunswick occurred in 2016 and 2017. The company's year-end is December 31. 2016 Purchased land, building and equipment for $320,000 by signing a note payable. The appraised values for the new assets are: Land $138,000, Building $276,000, equipment $46,000. The building will be amortized using the straight-line method over 20 years with a $50,000 residual value. The equipment will be amortized over 4 years with no residual value using the double declining balance method. Paid $8,000 to improve the efficiency of the equipment. Apr 1 29 Purchased a vehicle for $15,000 bv signing a note. The vehicle has a residual value of $3,000 and it is estimated that the car will be driven 150,000 km over its useful life. The units of production method will be used to amortize this asset. Jun 3 Purchased a patent paving S25,920 cash. The remaining useful life of the Dec patient is 4 vears and has no residual value.
The following selected transactions for Leaf Industries, operating in New Brunswick occurred in 2016 and 2017. The company's year-end is December 31. 2016 Purchased land, building and equipment for $320,000 by signing a note payable. The appraised values for the new assets are: Land $138,000, Building $276,000, equipment $46,000. The building will be amortized using the straight-line method over 20 years with a $50,000 residual value. The equipment will be amortized over 4 years with no residual value using the double declining balance method. Paid $8,000 to improve the efficiency of the equipment. Apr 1 29 Purchased a vehicle for $15,000 bv signing a note. The vehicle has a residual value of $3,000 and it is estimated that the car will be driven 150,000 km over its useful life. The units of production method will be used to amortize this asset. Jun 3 Purchased a patent paving S25,920 cash. The remaining useful life of the Dec patient is 4 vears and has no residual value.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 11P
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