( b ) Compute the amount of software cost amortization for the first year using the straight-line approach .
Question 25 Jeff Beck is a farmer who owns land which borders on the right-ofway of the Northern Railroad . On August 10 , 2012 , due to the admitted negligence of the Railroad , hay on the farm was set on fire and burned . Beck had had a dispute with the Railroad for several years concerning the ownership of a small parcel of land . The representative of the Railroad has offered to assign any rights which the Railroad may have in the land to Beck in exchange for a release of his right to reimbursement for the loss he has sustained from the fire . Beck appears inclined to accept the Railroad ’ s offer . The Railroad ’ s 2012 financial statements should include the following related to the incident : A ). recognition of a loss only . B ). creation of a liability only . C ). disclosure in note form only . D ). recognition of a loss and creation of a liability for the value of the land .
Question 26 Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts . On July 1 , Roley purchased $ 66,000 of inventory , terms 2 / 10 , n / 30 , FOB shipping point . Roley paid freight costs of $ 1,210 . On July 3 , Roley returned damaged goods and received credit of $ 6,600 . On July 10 , Roley paid for the goods . Prepare all necessary journal entries for Roley .
Question 27 Takemoto Corporation borrowed $ 93,000 on November 1 , 2012 , by signing a $ 95,093 , 3-month , zero-interest-bearing note . Prepare Takemoto ’ s November 1 , 2012 , entry ; the December 31 , 2012 , annual adjusting entry ; and the February 1 , 2013 , entry . ( For multiple debit / credit en tries , list amounts from largest to smallest , e . g . 10 , 8 , 6 . Round all answers to 0 decimal places , e . g . 11,150 .)