eASsignment/takeAssignmentMain.do? invoker-assignments&takeAssignmentSessionLocatorassignment-take&inpr Calcultr Print ten Amortization and depletion entries Starting questions Chart of Acoounts Jounal Instructions Data related to the acquisition of timber rights and intanoible assets during the current year ended December 31 are as follows A Timber rights ona tract of land were purchased tor $1,600,000 on February 22. The stand of timber is estmated at 5,000,000 board feet During the current year, 1,100,000 board teet of timber were cut and sold On December 31, the company determined that $3,750,000 of goodwill was impaired B C Governmental and legal costs of $6,600,000 were incurred on April 3 in obtaining a patent with an esimated economic life of 12 years Amortizaton is to be tor three-tourths of a year Required: 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items Journalize the adjusting entries required to record the amortizaton, depledon, or impairment for each item Refer to the Chart of Accounts for 2 exact wording of account stes Previous My Work 111 Petty Cash 610 Interestt Revenue 112 Accounts Receivable 620 Gain on Sale of Vehicles 114 Interest Receivable 621 Gain on Sale of Equipment 115 Notes Receivable 622 Gain on Sale of Timber Rights 116 Merchandise Inventory 623 Gain from Sale of Goodwil 117 Supplies 119 Prepaid Insurance EXPENSES 120 Land 510 Cost of Merchandise Sold 123 Vehicless 520 Salaries Expense 124 Accumulated Depreciation-Vehicles 521 Advertising Expense 125 Equipment 522 Depreciation Expense-Vehicles 126 Accumulated Depreciation-Equipment 523 Delivery Expense 130 Timber Rights 524 Repairs and Maintenance Expense 131 Accumulated Depletion 529 Selling Expenses 132 Goodwil 531 Rent Expense 133 Patents 532 Depreciation Expense-Equipment 533 Depletion Expense LIABILITIES 534 Amortiz ation Expense-Patents 210 Accounts Payable 535 Insurance Expense 211 Salaries Payable 536 Supplies Expense 539 Miscellaneous Expense 213 Sales Tax Payable 214 Interest Payable 710 Interest Expense 215 Notes Payable 720 Loss on Sale of Vehicles 721 Loss on Sale of Equipment EQUITY 722 Loss on Sale of Timber Rights 310 Common Stock 723 Loss from Impaired Goodw 311 Retained Eamings 312 Dividends Check W

CCCC > Less on impairment of goodwille for current yees =$3,750,000 Amount of Amortization for the current year = $412,500 rey $6,600,000 & 12yrs 26,600,000 - $550,000 Amortization is to his for Herre-fourths of a yearle, 3/4th > 550,000x ->$412,500 Amount of depletion for the wssent years = $352,000 leu, $1,600,000 XL 100,000 5,000,000 => $352,000 3550,000 4 3:$412,500 ANA Credit ($) Debit $352,000 $352,000 Tambo 412,500 Date Particulas 22nd Feb Depletion Expense Accumulated Depletion (The amount of deplotions for righ the current year is adjusted) Abålgrd Amortization Orberie-Patents Patents (The author ortization expense. Es adjusted for the current year) Decaist Loss on impaired Goodwill - Goodwill Being loss on impaired goodwill is adjusted to Goodwill Alc) 4,12500 3,750,000 3.750000 .

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CCCC > Less on impairment of goodwille for current yees =$3,750,000 Amount of Amortization for the current year = $412,500 re

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