Intermediate Accounting: Reporting And Analysis
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ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Transcribed Image Text:RMSUM BARS
Quèstion 5
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.
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