Question

On January 1, 2017, Blossam Company had a balance of $38.000 at goodwill on its balance sheet that resulted from the purchase of a small business in a priorynar. The goodwill had an indefinitelt. During 2017, the company had the following additional transact Jan. 2 Purchased a patent 15 year life $204.550. July 1 Acquired a 9-year franchise: expiration date July 12.026, $626.400. Sept. 1 Roscarch and development costs $182,500. no entry is required, select "No Entry for the Prepare the necessary entries to record the transactions related to Intangibles. All costs incurred were for cash Record entries in the arder displayed in the problem statement. Creditaccountitles are automatically indented when the amount is entered Da natindent morally account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit eTextbook and Media Ust of Accounts Make an entry as of December 31, 2017, recording any necessary amortization (Round answers to decimal places. ca. 125. Credit accounttities are automatically indented when the amount is entered. Do not indent manually if no antry is required. selat No Entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit Textboak and Media Listat Accounts Indicate what the intane ble asset account balances should be on December 31, 2017 Patent $ Franchise $

Answer 1

		Debit	Credit
1/2/17	Patents	284550
	Cash		284550
7/1/17	Franchise	626400
	Cash		626400
9/1/17	Research and Development Expense	182500
	Cash		182500
2
	Amortization Expense	91710
	Patents		56910	=284550/5
	Franchise		34800	=626400/9*6/12
3
	Patents	227640		=284550-56910
	Franchise	591600		=626400-34800