33) In 2014, David Company paid $250,000 for an oil field that contains an estimated 20,000 barrels of oil. The oil field has no residual value. 5,000 barrels are extracted and sold in 2014 and 6,500 barrels are extracted and sold in 2015.
Required:
Prepare all journal entries. Explanations are not required.
34) New Tech Company acquired a patent on January 1, 2015 for $35,000. The residual value of the patent is $0. The patent is expected to be of benefit to New Tech Company for 5 years. After using the patent one year, it was discovered that the patent would only be useful for 3 more years.
Required:
1. Prepare the journal entry to record the acquisition of the patent. Omit explanation.
2. Prepare the adjusting journal entry at December 31, 2015. Omit explanation.
3. Prepare the adjusting journal entry at December 31, 2016. Omit explanation.