Question

Exercise 9-13 Kingbird, Inc. incurred the following costs in 2019. 1/2/19 Purchased patent (6-year life) 4/1/19 Goodwill purchased (indefinite life) 7/1/191 3-year franchise; expiration date 7/1/2032 9/1/19 Research and development costs $504,000 360,000 715,000 179,500 Prepare the necessary entries to record these transactions. All costs incurred were for cash. Make the adjusting entries as of December 31, 2019, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 2002019 John Wiley Sons All Dichts Reserved

Answer 1

ANSWER

02-01-2019	Patents	504,000
	Cash		504,000
01-04-2019	Goodwill	360,000
	Cash		360,000
01-07-2019	Franchise	715,000
	Cash		715,000
01-09-2019	Research and development expense	179,500
	Cash		179,500
31-12-2019	Amortization expense	111,500
	Accumulated amortization patents		84,000	(504,000/6)
	Accumulated amortization Franchise		27,500	(715,000/13*6/12)
	Ending balance
	Patents	420,000	(504,000-84,000)
	Goodwill	360000
	Franchises	687,500	(715,000-27,500)
	Research and development expense	179,500

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