Question

During 2016, Grouper Corporation spent $152,640 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $28,080 related to the patent were incurred as of October 1, 2016. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 2016 (To record research and development expenses) 2016 (To record legal expenses) 2016 (To record amortization expense) 2017 TILAINAJ:

Answer 1

Answer Page: No 0 0 Journal entries ouguined in 2016 & 2014 On 2016, To record amortization expense, 'Patent amortization oct to det ( 3 months) expense = $28080 , 3 Ta очео = $402 On 2017, Patent amortization expense = $28080 - $2808 10 years Date Debit Gredito 2016 $152640 $152640 2016 Peorticular . Research & developement expense To cash Patents ale To cash Peltent, amortization expense; To patent . $28080 $28080 2016 $702 $702 2016 $ 2808 Patent amortization expense Topatents $2808

Page No @ @ Tournal entries required 2018 @ 2019 Amortization expense in 2018 & 2019.. Opto Jone !, Amortization = 28080 x 5 m I 5 months 10 yrs = $1170 Johe 31 to dec , Amortization - - 34560 34560 lQyears 7. 12 June 31 todec). ( 4 months → 28080 - 400 - 2808 + 11160 - 1140 = a = $1680 Amortization for 2018 = 1680 + 1170 - 2850 Amortization for 2019 = 34560 = $2880

Page No ③ I Credit Date Particular Debit $11,160 2018 Patents To cash $11,160 *2850 2018 $2850 Patest amortization expense To Patent . Patent amortization expense To patent 2019 $2880 $2880 * Journal entries required to 2020 € 2021 An ota will be worthless by dec.B1, 2001 But it Come sto knowil use in 2020. Therebore file will arrestise it. Date Particular Debit Credit 2020 Patentend arnostization expense $15000 To Patents $15000 Patent amortization expense 15000 To Patent $15000 Patent arealization expense - (38080 – 702- 1806 – 2850 - 2380) +(11160) 30000 - $ 15000