Question

Help Save&Exit Submit Check my work 5 In 2018, Bratten Fitness Company made the following cash purchases 1. The exclusive right to manufacture and sell the X-Core workout machine from Symmetry Corporation for $214,000. Symmetry 2. An initial fee of $315,000 for a three-year agreement with Silver's Gym to use its name for a new facility in the local area. Siliver's 10 points created the unique design for the machine. Bratten also paid an additional $9,500 in legal and filng fees to attorneys to complete the transaction. eBock Hint Print References Gym has locations throughout the country. Bratten is required to pay an additional fee of $6,400 for each month it operates under the Silver's Gym name, with payments beginning ih March 2018. Bratten also purchased $414,000 of exercise equipment to be placed in the new facility. 3. The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $33,000. The book includes healthy recipes recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its new facility, as well as make it available online. Required: Prepare a summary journal entry to record expenditures related to initial acquisitions. (If no entry is required for a transaction/event select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Prev 5 of 7Next> Show All

Answer 1

Answer:

General journal	Debit ($)	Credit($)
Patent A/c Dr	$223,500
Franchise A/c Dr	$315,000
Equipment A/c Dr	$414,000
Copyright A/c Dr	$33,000
To Cash A/c		$985,500
(To record the expenditures related to initial acquisitions)