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Financial Accounting: journal entries

1. The annual depreciation per thousand units is as follows:

Balance of
End of Unit Accumulated Asset
Year Output Depreciation Expense Depreciation Book Value

$100,000
2002 80,000
2003 120,000
2004 40,000

At the end of 2004 the equipment is damaged and you have to write it off
the books. Make the journal entry for the write off.

2. You pay $790,000 for a business and the list of accounts is as follows. Record the purchase.
1. Accounts Receivable.............................................. 180,000
Inventory................................................................... 75,000
Equipment................................................................ 84,000
Short-Term Loan Payable...................................... 160,000
Cash ........................................................ 790,000

3. Make a journal entry to record the $1,450,000 purchase of various franchise assets as follows: (The franchise itself has a cash value of $225,000 and you paid it to Ruby Tuesdayl)
The appraised values are Land $320,000; Patent 340,000, Building $620,000.

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Solution Summary

The solution provides journal entries for write off of equipment & purchase of franchise asset.

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