Janes Company provided the following information on intangible assets:
Materials and supplies | $ | 147,000 | |
Personnel | 187,000 | ||
Indirect costs | 67,000 | ||
Total | $ | 401,000 | |
Required:
1. Prepare the entries necessary for years 2019
through 2021 to reflect the above information.
2. Prepare a schedule showing the intangible asset
section of Janes’s December 31, 2021, balance sheet.
Prepare a schedule showing the intangible asset section of Janes’s December 31, 2021, balance sheet.
|
Journal entries | ||||||
Date | Particulars | Debit | Credit | |||
2019 | patent | 1050000 | ||||
cash | 1050000 | |||||
2019 | amortization expenses (1050000/10) | 105000 | ||||
patent | 105000 | |||||
2020 | amortization expenses (1050000/10) | 105000 | ||||
patent | 105000 | |||||
2021 | franchise | 570000 | ||||
cash | 570000 | |||||
2021 | Research & development expenses | 401000 | ||||
cash | 401000 | |||||
2018 | amortization exp | 168000 | ||||
patent | 168000 | |||||
2018 | amortization exp (570000/10) | 57000 | ||||
franchise | 57000 | |||||
working | ||||||
amortization exp-patent = 105000 | ||||||
for 2 years = 105000*2 = 210000 | ||||||
unamortized cost = (1050000-210000) = 840000 | ||||||
amortization exp-patent = 840000/5 = 168000 | ||||||
Balance sheet | ||||||
intengible assets | ||||||
patent | 1050000 | |||||
less: amortization | -378000 | |||||
patent -net | 672000 | |||||
Franchise | 570000 | |||||
less: amortization | -57000 | |||||
franchise-net | 513000 | |||||
total intengible | 1185000 |
Janes Company provided the following information on intangible assets: A patent was purchased from the Lou...
Janes Company provided the following information on intangible assets: A patent was purchased from the Lou Company for $1,550,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $520,000 when Lou sold it to Janes. During 2021, a franchise was purchased from the Rink Company for $670,000. The contractual life of the franchise is 10 years and Janes...
Janes Company provided the following information on intangible assets: A patent was purchased from the Lou Company for $1,400,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $490,000 when Lou sold it to Janes. During 2021, a franchise was purchased from the Rink Company for $640,000. The contractual life of the franchise is 10 years and Janes...
anes Company provided the following information on intangible assets: A patent was purchased from the Lou Company for $1,600,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $530,000 when Lou sold it to Janes. During 2021, a franchise was purchased from the Rink Company for $680,000. The contractual life of the franchise is 10 years and Janes...
Janes Company provided the following information on intangible assets:A patent was purchased from the Lou Company for $1,650,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $540,000 when Lou sold it to Janes.During 2021, a franchise was purchased from the Rink Company for $690,000. The contractual life of the franchise is 10 years and Janes records a...
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Janes Company provided the following information on intangible assets: a. A patent was purchased from the Lou Company for $1,400,000 on January 1, 2016. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $490,000 when Lou sold it to Janes. b. During 2018, a franchise was purchased from the Rink Company for $640,000. The contractual life of the franchise is 10 years...
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