Chapter 3
Long-Term Assets
107
b) Prepare a journal entry to record the amortization on December 31, 2016.
Date
Account Title and Explanation
Debit
Credit
AP-16A (
7
)
The following data pertains to Krips Company for the year ended December 31, 2016.
Net Sales
$60,000
Net Income
15,000
Total Assets (January 1, 2016)
200,000
Total Assets (December 31, 2016)
300,000
Calculate Krips Company’s return on assets for 2016. Explain what the ratio means.
