Question

Exercise 9-13 Bramble Corp. incurred the following costs in 2019. 1/2/19 Purchased patent (6-year life) $483,000 4/1/19 Goodwill purchased (indefinite life) 360,000 7/1/19 13-year franchise; expiration date 7/1/2032 624,000 9/1/19 Research and development costs 176,000

Exercise 9-13 Bramble Corp. incurred the following costs in 2019. 1/2/19 Purchased patent (6-year life) 4/1/19 Goodwill purchased (indefinite life) 7/1/191 3-year franchise; expiration date 7/1/2032 9/1/19 Research and development costs $483,000 360,000 624,000 176,000 Prepare the necessary entries to record these transactions. All costs incurred were for cash. Make the adjusting entries as of December 31, 2019, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: STMTLAR EXERCISE VIDEO: APPLIED SKILLS

Answer 1

Answer:

Date	Accounts	Debit($)	Credit($)
Jan. 2	Patent	4,83,000
	Cash		4,83,000
	(To record patent purchased)
Apr. 1	Goodwill	3,60,000
	Cash		3,60,000
	(To record goodwill purchased)
Jul. 1	Franchise	6,24,000
	Cash		6,24,000
	(To record franchise purchased)
Sep. 1	Research and development expense	1,76,000
	Cash		1,76,000
	(To record research and development costs)
Dec. 31	Amortization expense	1,04,500
	Patent ($483,000/6 years)		80,500
	Franchise ($624,000/13 years x 6/12)		24,000
	(To record amortization expense)

Ending balance
	Amount($)
Patents(483000-80500)	4,02,500
Goodwill	3,60,000
Franchises(624000-24000)	6,00,000
Research and development expense	1,76,000