Sheridan Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020.
1/2/20 | Purchased patent (8-year life) |
$357,600 |
||
4/1/20 | Purchase goodwill (indefinite life) |
357,000 |
||
7/1/20 | Purchased franchise with 10-year life; expiration date 7/1/30 |
437,000 |
||
8/1/20 | Payment of copyright (5-year life) |
164,400 |
||
9/1/20 | Research and development costs |
227,000 |
||
$1,543,000 |
(a1)
Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles.
a1 | ||
Debit | Credit | |
Patents | 357600 | |
Goodwill | 357000 | |
Franchises | 437000 | |
Copyrights | 164400 | |
Research and Development Expense | 227000 | |
Intangible Assets | 1543000 | |
Sheridan Company, organized in 2019, has set up a single account for all intangible assets. The...
Sheridan Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) $357,600 4/1/20 Purchase goodwill (indefinite life) 357,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 437,000 8/1/20 Payment of copyright (5-year life) 164,400 9/1/20 Research and development costs 227,000 $1,543,000 Make the entry as of December 31, 2020, recording any necessary amortization Reflect all balances as...
Sandhill Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. Intangible Assets 7/1/20 8-year franchise; expiration date 6/30/28 $60,000 10/1/20 Advance payment on laboratory space (2-year lease) 26,400 12/31/20 Net loss for 2020 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2020) 12,400 1/2/21 Patent purchased (10-year life) 84,400 3/1/21 Cost of...
Crane Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (9-year life) 4/1/20 Purchase goodwill (indefinite life) on date 7/1/30 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 8/1/20 Payment of copyright (5-year life) 9/1/20 Research and development costs $407,700 363,000 443,000 171,600 233,000 $1,618,300 Prepare the necessary entry to clear the Intangible Assets account and to set...
Wildhorse Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) 4/1/20 Purchase goodwill (indefinite life) 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 8/1/20 Payment of copyright (5-year life) 9/1/20 Research and development costs $360,800 361,000 441,000 169,200 231,000 $1,563,000 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts...
Ivanhoe Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (7-year life) $310,800 4/1/20 Purchase goodwill (indefinite life) 354,000 434,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 160,800 8/1/20 Payment of copyright (5-year life) Research and development costs 9/1/20 224,000 $1,483,600 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts...
1- Sunland Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (7-year life) $305,900 4/1/20 Purchase goodwill (indefinite life) 347,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 427,000 8/1/20 Payment of copyright (5-year life) 152,400 9/1/20 Research and development costs 217,000 $1,449,300 a:Prepare the necessary entry to clear the Intangible Assets account and to set up separate...
Cullumber Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) $354,400 4/1/20 Purchase goodwill (indefinite life) 353,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 433,000 8/1/20 Payment of copyright (5-year life) 159,600 9/1/20 Research and development costs 223,000 $1,523,000 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts...
Cullumber Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) $354,400 4/1/20 Purchase goodwill (indefinite life) 353,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 433,000 8/1/20 Payment of copyright (5-year life) 159,600 9/1/20 Research and development costs 223,000 $1,523,000 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts...
Problem 12-01 Cullumber Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. 7/1/20 10/1/20 12/31/20 $43,200 28,200 Intangible Assets 8-year franchise; expiration date 6/30/28 Advance payment on laboratory space (2-year lease) Net loss for 2020 including state incorporation fee, $1,500, and related legal fees of organizing, $5,500 (all fees incurred in 2020) Patent purchased (10-year life) Cost of developing a...
Question 12 --/1 View Policies Current Attempt in Progress Sheridan Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) 4/1/20 Purchase goodwill (indefinite life) 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 8/1/20 Payment of copyright (5-year life) 9/1/20 Research and development costs $348,800 346,000 426,000 151,200 216,000 $1,488,000 Prepare the necessary entry to clear the...