( 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.)