Question

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

Answer 1

Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date	Account Titles and Explanation	Debit	Credit
	Patents	$    348,800.00
	Goodwill	$    346,000.00
	Franchise	$    426,000.00
	Copyright	$    151,200.00
	Research and Development Expenses	$    216,000.00
	Intangible Assets		$ 1,488,000.00
Make the entries as of December 31, 2020, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
	Account Titles and Explanation	Debit	Credit
	Amortization Expenses	$      77,500.00
	Patents ($348,800/8)		$      43,600.00
	Franchise (426,000/10 x 6/12)		$      21,300.00
	Copyright ($151,200/5 x 5/12)		$      12,600.00
Balance of Intangible Assets as of December 31, 2014
Patents	$                                                                                305,200.00
Goodwill	$                                                                                346,000.00
Franchise	$                                                                                404,700.00
Copyright	$                                                                                138,600.00

B 1 Rolanda Marshall Compar 2 43832 Purchased patent (8year life) 343922 Purchase goodwill indefinite life) 4 44013 Purchased franchise with 10-year life; expiration date 7/1/30 44044 Payment of copyright (5-year life) 44075 Research and development costs 348800 346000 426000 151200 216000 =SUM(C2:06) Credit Debit =C2 =C3 Prepare the necessary ent Date Account Titles and Explanation Patents Goodwill Franchise Copyright Research and Development Expenses Intangible Assets =C4 =SUM(C10:C14) Credit Debit =SUM(D20:D22) Make the entries as of De Account Titles and Explanation Amortization Expenses Patents ($348,800/8) Franchise (426,000/10 x 6/12) Copyright ($151,200/5 x 5/12) =C10/8 =C12/10*6/12 =C13/5*5/12 24 Balance of Intangible Asse Patents =C10-D20 26 Goodwill =C11 27 Franchise =C12-D21 28 Copyright =C13-D22