Valix Finacc vol 1 Problem 20-19

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-19

1. Rent expense                                                                                    600,000

            Cash                                                                                                                   600,000

2. Leasehold                                                                                          100,000

            Cash                                                                                                                   100,000

3. Leasehold improvement                                                                   200,000

            Cash                                                                                                                   200,000

4. Leasehold improvement                                                                     50,000

Cash                                                                                                                     50,000

                                                                                                               267

                                                                                                                                               

5. Amortization of leasehold                                                                  20,000

            Leasehold (100,000 / 5)                                                                                         20,000                                                                                                                                            

6. Depreciation                                                                                      52,500

            Accumulated depreciation                                                                                 52,500

    200,000 / 5                                                                                                                    40,000

    50,000 / 4                                                                                                                      12,500

                                                                                                                                                                                      52,500

turU � t i �= � I style='mso-tab-count:1'>                        Patent                                                                                                   43,600

            Patent written off                                                                    566,800

                         Patent                                                                                                566,800

                                                                                                                                                            Balance – 1/1/2010                                                                                               654,000

            Less: Amortization                                                                    

                        2010                                                                               43,600

                        2011                                                                               43,600              87,200

            Unamortized cost                                                                                            566,800