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Stern Corporation Case 7-1

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Case 7-1

Journal Entries: # | Transaction | DR | CR | 1 | Cash | 3,866.00 | | | Accumulated Depreciation, Factory Machine | 27,367.00 | | | Factory Machine | | 31,233.00 | 2 | Depreciation Expense | 7,850.00 | | | Tools | | 7,850.00 | 3 | Depreciation Expense, Automotive (a) | 278.00 | | | Accumulated Depreciation, Automotive (a) | | 278.00 | | Cash | 2,336.00 | | | Accumulated Depreciation, Automotive (b) | 5,458.00 | | | Loss on Sale of Asset (c) | 560.00 | | | Automotive Equipment | | 8,354.00 | 4 | Patent Amortization Expense (d) | 11,250.00 | | | Patent | | 11,250.00 | 5 | Cash | 75.00 | | | Accumulated Depreciation, Office Typewriter | 1,027.00 | | | Gain from Sales of Office Typewriter | | 75.00 | | Office Typewriter | | 1,027.00 | 6 | Cash | 80.00 | | | Depreciation Expense, Furniture and Fixtures (e) | 36.75 | | | Accumulated Depreciation, Furniture and Fixtures | 431.75 | | | Accumulated Depreciation, Furniture and Fixtures | | 36.75 | | Furniture and Fixtures | | 490.00 | | Gain from Sales of Furniture and Fixtures (f) | | 21.75 | 7 | Depreciation Expense | 407,279.28 | | | Accumulated Depreciation, Building | | 48,105.18 | | Accumulated Depreciation, Factory machine | | 339,435.20 | | Accumulated Depreciation, Furniture and Fixtures | | 5,599.40 | | Accumulated Depreciation, Automotive | | 9,988.80 | | Accumulated Depreciation, Office Machines | | 4,150.70 | | | | | | | | | | | 467,894.78 | 467,894.78 |

Computation:

(a) | Depreciation was computed by (1/6*.20*8354) | (b) | Accumulated Depreciation was got from 5180 + 278 | (c) | Loss on sale came from book value of car less depreciation and cash that was received | (d) | The entry came from 56250/5…...

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