If Hixson uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Hixson determines that Fell’s $1,400 balance is uncollectible.
|
Date |
Account/Description |
Debit |
Credit |
||||||||||||||||||||
|
Dec. 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
|
|
|
|
DO IT! 9-4 |
|
|
Match the statement with the term most directly associated with it.
|
|
Goodwill |
Amortization |
|
Intangible assets |
Franchise |
|
|
Research and development costs |
|
1. |
Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance. |
|
|
2. |
The allocation of the cost of an intangible asset to expense in a rational and systematic manner. |
|
|
3. |
A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area. |
|
|
4. |
Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred. |
|
|
5. |
The excess of the cost of a company over the fair market value of the net assets acquired. |
|
Presented below are selected transactions at Ingles Company for 2011.
|
Jan. 1 |
Retired a piece of machinery that was purchased on January 1, 2001. The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value. (Assume depreciation is up to date as of December 31, 2010.) |
|
June 30 |
Sold a computer that was purchased on January 1, 2008. The computer cost $40,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000. |
|
Dec. 31 |
Discarded a delivery truck that was purchased on January 1, 2007. The truck cost $39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value. |
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ingles Company uses straight-line depreciation.(For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
|
Date |
Account/Description |
Debit |
Credit |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Jan. 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
$ |
|
|
|
|
|
Total plant assets |
|
$ |
