Question

During 2016, Riverbed Corporation spent $162,720 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 $36,720 related to the patent were incurred as of October 1, 2016.
Your answer is correct. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account titles are automa amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amour Date Account Titles and Explanation Debit Credit 2016 Research and Development Expense 162,720 Cash 162,720 (To record research and development expenses) 2016 Patents 36,720 Cash 36,720 (To record legal expenses) 2016 Amortization Expense 918 Patents 918 (To record amortization expense) 2017 Amortization Expense 3672 | Patents 3672

Answer 1

Requirement Requirement Date Credit Credit Credit Requirement A Date Accounts Title and Explaination 2016 Research and Development Expense Cost Debit $ 162.720.00 Accounts Title and Explaination 2018 potem Cast: Debit $ 8200.00 Accounts Title and Explaination 2020 Amortization Experde Patents Debit $16.875.00 $1,62,720.00 $820000 $ 16,875.00 (To Record Research and Development experie) (Te Record Potents (To amortize remaining balance in two years) 2016 Patents $3672010 $16875.00 2018 Amortization Expanse Puleats 2021 Amortization Expense Pulents $36,720.00 $ 3.420.00 $ 16,879.00 (To Record Legal Dxpense) (Te Record Awritur expense) (Touri n g bulance in two years) This is for year 2021 You didn't ghan any box for this This is for your say butunc $ 91000 2016 Amortization Expense Pulans 2019 Amur ullon Expert Pulls $ 210.00 $3240.00 (To Record Amurilion expense) (Te Red Anreir exe) $ 3.672.00 2017 Am i n Cxpense Poeta 3612 (To Record Amortization experse) Working Note: Balance of Patent on June 01 2018 Patentos on Oct. 2016 Les Amortization expers for 2016 Less: Amortization expers for 2017 Les Amortization expers for 2018 (5 months $36.72000 $ (918.00) $ 3,672.00) $(1.330.00) $30 60000 $920000 $38 SONO Add capitalisation Baloner of Patent on June 01,2018 Amortization expersz of 2018 for remaining 7 months $ 1890.00 Total Amortization expense for 2018 $ 3, 420.00