Preparing the necessary journal entries for the year ended

Assignment Help Cost Accounting
Reference no: EM132962774

Question - On 1 January 20X1, it purchased a patent on new vision recognition technology with cash of $40 million.

The patent has an expected useful life of 10 years with no residual value. At the end of five years, the fair value of the patent is $18 million.

The costs of disposal are $3 million. The present value of future cash flows for the remaining five years is $17 million.

The sum of the undiscounted future cash flows for the remaining five years is $19 million.

Illustrate the accounting for the patent by preparing the necessary journal entries for the year ended 31 December 20X1.

Illustrate the accounting for the patent by preparing the necessary journal entries for the year ended 31 December 20X5.

In the process, also determine and explain the amount of impairment loss HBC Ltd would recognise in its books.

Reference no: EM132962774

Questions Cloud

How do record the adjusting entry for uncollectible accounts : Record the adjusting entry for uncollectible accounts. The company determines $3,000 of accounts receivable on January 31 are past due
What is the implicit cost of trade credit : Question - Book Depot Inc. sells on terms of 3/15, net 80. What is the implicit cost of trade credit under these terms? Use a 365 day year
Prepare the december stockholders equity section : Reissued 700 treasury shares for land valued at $28,400. Prepare the December 31, 2020, stockholders' equity section. Assume 2020 net income was $325,000.
Prepare the adjusting entries to report each class : The non-trading securities are held as a long-term investment. Prepare the adjusting entries to report each class of securities at fair value
Preparing the necessary journal entries for the year ended : Illustrate the accounting for the patent by preparing the necessary journal entries for the year ended 31 December 20X1
Calculate the total annual assessment for Artman Automotive : The maximum assessable earnings for Nova Scotia for 2021 are $64,500.00. Calculate the total annual assessment for Artman Automotive
What was the company operating cash flow : During the year, the Senbet Discount Tire Company had gross sales of $1.25 million. What was the company operating cash flow
How much must you deposit each year to reach your goal : If the bank is willing to pay 9 percent compounded annually, how much must you deposit each year to reach your goal
Human capital management initiatives at ibm : "Human Capital Management is the effective acquisition, employment, and development of a company's employees through strategic and tactical practices, processes

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd