Question 2Al Hajar Electronics LLC Asset Acquisition and DepreciationOn 1st April 2022, Al Hajar Electronics LLC, a company based in Oman specializing in retailinghigh-quality electronic goods, acquires a new refrigeration system for its main warehouse fromCoolTech Solutions. The financial and operational details of the purchase are as follows:OMR:•List price of the refrigeration system: 62,000•Import duty: 1,200•Delivery fees: 1,750Installation costs: 6,500FA 2 Assignment Brief Spring 2024.Pre-production testing: 3,600Purchase of a four-year service agreement with CoolTech Solutions: 5,500Additionally, Al Hajar Electronics LLC was granted a trade discount of 15% on the initial list priceof the refrigeration system and a settlement discount of 5% if payment was made within 30 daysof purchase. The payment for the refrigeration system was completed on 20th April 2022.The refrigeration system is estimated to have a useful life of 8 years with a potential salvage valueof OMR 6,250 at the end of its use. The estimated usage is 70,000 cooling hours over its lifetime.In the year 2022, Al Hajar Electronics LLC uses the refrigeration system for 900 hours.

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 62E

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Brief Exercise 7-37Cost and Amortization of Intangible Assets On January 2, 2019, Frazier Company purchased a restaurant franchise for $85,000. The terms of the franchise agreement allowed Frazier to have exclusive rights to operate a restaurant under the "Simply Fried" brand name for the next 10 years. Required: Prepare any journal entries related to the franchise that Frazier should make during 2019. Jan. 2 fill in the blank 2 fill in the blank 4 (Record purchase of franchise) Dec. 31 fill in the blank 6 fill in the blank 8 (Record amortization of franchise)
Question 3: Disposal of PPE On January 1, 2021, the Dayton Auto Parts Company acquired nine identical assembly robots for a total of $594,000 cash. The robots had an expected useful life of 10 years and an expected residual value of $54,000 in total. Dayton uses straight-line depreciation. 1. What is the journal entry for the acquisition? 2. What is the journal entry for the first annual depreciation charge? 3. On December 31, 2023, Dayton sold one of the robots for $42,000 in cash. The robot had an original cost of S$66,000 and an expected residual value of $6,000. Prepare the journal entry for the sale. 4. Refer to requirement 3. Suppose Dayton had sold the robot for $52,000 cash instead of $42,000. Prepare the journal entry for sale.
Question 1Ahmed Al Balushi SAOG is planning to acquire Abdullah SAOG at a Purchase consideration of OMR 350,000. Below is the Extract of the Statement of Financial Position as at 31st December 2019; Non – Current Assets OMR Intangible Non - Current Asset Patent 21,000 Tangible Non- Current Asset Property, plant, and Equipment 215,500 Current Assets Inventories 89,750 Trade Receivable 42,750 Cash 22,500 Current Liabilities Trade Payable 53,750 Bank over draft 12,000 Non – Current Liabilities 8% bank loan 85,000 Based on the above information,A. You are required to calculate the value of goodwill for Abdullah SAOG as at 31st Dec 2019? In the year 2020, Ahmed Al Balushi has identified the implied goodwill is OMR 85,000.B. Calculate the value of good will to be impaired? C. Discuss the 2 types of Intangible assets with suitable examples?
Investment property Q1 XYZ, a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment potential. The land element of the cost is believed to be Ghs 400,000 and the buildings element is expected to have a useful life of 50 years. At 31 December 2016, local property indices suggest that the fair value of the property has risen to Ghs1.1m. Requirement Explain how the property would be presented in the financial statements as at 31 December 2016 if XYZ adopts the: (i) Cost model; and (ii) Fair value model.
3 Question 2 of 2 E D (b) Your answer is partially correct. Date Apr. 1, 2026 Apr. 1, 2026 R On April 1, 2026, Blue sold the machine for $1,497,600 to Yoakam Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) % V T Account Titles and Explanation G Depreciation Expense Accumulated Depreciation - Machinery (To record current depreciation.) Cash eTextbook and Media Accumulated Depreciation - Machinery Machinery Gain on Disposal of Machinery (To record sale of the machine.) B H HQ Search N U J M K L DELL LCOP { [ 1 ? 1 Debit 111 Enter Delete Shift Ctrl End 15/30 1 1 Attempts: 3 of 3 used 1 PgDn ||| ↓ Credit Home End 400 0 Ins
Question 10 A. Manam Co. purchased a Trademark for $ 160,000 on October 1, 2020. The Trademark is legally used for 10-year period. Required: Prepare the journal entry to record the amortization expense on Dec. 31, 2020 B. On January 1, 2018, Zallaq Trading Co. acquired a truck costing $850,000. Zallaq uses the straight-line method to depreciate the truck with an estimated salvage value of $50,000 and an estimated useful life of 20 years. On July 1, 2020, Zallaq sold the truck for $ 720,000 cash. Required: Prepare journal entries to record: 1. The partial year's depreciation (the update) on July 1, 2020. 2. The sale of the truck on July 1, 2020. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE "," BETWEEN NUMBERS: Dr. Cash 10000 Cr. Land 10000 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
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On Jan 1, 2021, Worsham Manufacturing purchased a new machine with an acquisition value of $350,000. It has been determined that the machine has a residual value of $16,000 with an estimated useful life of 5 years. Assuming the company uses the straight-line method to depreciate this type of asset, what would the book value be at the end of Year 5? O66.800 O 16,000 00 350.000 Question 20 4 pts lyr
Q42 Dhofar LLC acquired an asset on 1st January 2019 for OMR 500,000 and the rate of depreciation is 10%p.a. Under Straight line method. Replacement cost of the asset on 31st December 2019 was OMR 700,000 and on 31st December 2020 was OMR 1,000,000. You are required to calculate for 2020 assuming switch year is made in the current year, the value of Backlog depreciation. a. OMR 50,000 b. None of these are correct c. OMR 85,000 d. OMR 15,000
PROBLEM 1 MBS Inc. acquires a building on February 1, 2019 at a cost of P5,500,000. The building has an estimated useful life of 40 years and an estimated salvage value of P500,000. Required: a. Prepare the following: i. journal entry to record the purchase of building. ii. Adjusting entry on December 31 assuming the company prepares its financial statements on this date. b. Determine the following (show solution): i. amount of expense to be recognized for 2019 ii. book value of the building as of December 31, 2019.
QS 10-15 (Algo) Intangible assets and amortization LO P4 On January 1 of this year, Diaz Boutique pays $185,000 to modernize its store. Improvements include new floors, ceilings, wiring, and wall coverings. These improvements are estimated to yield benefits for 10 years. Diaz leases (does not own) its store and has 8 years remaining on the lease. 1. & 2. Prepare the journal entry to record the cost of modernization and amortization at the end of this current year.
Short answer question 2 On May 1, 2019 Number 6 Red Company paid $100,000 for a limited life intangible asset. The legal contract states that Number 6 Red has rights to the intangible asset for 8 years. Number 6 Red believes that the intangible asset will provide benefits for 5 years, after which time it will have no commercial value. Year-end is December 31. Required: Record the amortization expense for 2019. в I U Format >

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