Question

edugen.wileyplus.com/edugen/lt/main.uni PVPLUS Weygandt, Financial and Managerial, 3e VELU Help System Announcements sad, Study & Practice Assignment Gradebook ORION Downloadable eTextbook > Open Assignment ENT RESOURCES HW Exercise 9-13 al-a2 (Video) Sunland Company, organized in 2020, has the following transactions related to intangible assets se 9-00 1/2/20 4/1/20 7/1/20 9/1/20 Purchased patent (6-year life) Goodwill purchased (indefinite lite) 1 4-year franchise; expiration date 7/1/2034 Research and development costs $540,000 360,000 532.000 se 9-07ala 158,000 se 9-08- e-09 Video cise 9-12 Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of Dec necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent man the order presented in the problem. I ne entry is required, select "No Entry" for the account titles and enter for to Date Account Tities and Explanation Credit 1/2/20 - Patents 540000 9-11 2 Cash 540000 4/1/20 Goodwill 360000 Score w Results by Study Cash 360000 9 M acer 00

Answer 1

Calculate the requirements as follows: А D Credit Date 2 01 February 2020 Account Title & Explanation Patents Cash C Debit | $ 5,40,000 $ 5,40,000 5 01 April 2020 $ 3,60,000 Goodwill Cash $ 3,60,000 8 01 July 2020 $ 5,32,000 Franchise Cash $ 5,32,000 10 12 $ 1.58.000 11 01 September 2020 Research and Development Expense $ 1.58.000 Cash 13 14 31 December 2020 Amortization Expense Patent | $ 90.000 ($540,000 = 7) Amortization Expense Franchise $ 19,000 17 [($532,000 = 14) X 1/2] 18 Patents Franchise $ $ 90,000 19,000 20 Ending Balances 22 Patents 23 Goodwill 24 Franchise 25 R&D 4,50,000 3,60,000 5,13,000 1,58,000

Calculations: Α Date 2 43862 C Debit 540000 D Credit Account Title & Explanation Patents Cash =C2 5 43922 360000 Goodwill Cash 360000 8 44013 532000 Franchise Cash =C8 10 11 44075 Research and Development Expense 158000 Cash =C11 12 13 =540000/6 =532000/14*1/2 =C14 =C16 14 44196 Amortization Expense Patent 15 ($540,000 = 7) 16 Amortization Expense Franchise [($532,000 = 14) X 1/2] Patents Franchise 20 Ending Balances 22 Patents =C2-C14 23 Goodwill =C5 24 Franchise =C8-C16 25 R&D =C11