Question

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 $207,000. Symmetry created the unique design for the machine. Bratten also paid an additional $13,500 in legal and filing fees to attorneys to complete the transaction.
2. An initial fee of $280,000 for a three-year agreement with Silver’s Gym to use its name for a new facility in the local area. Silver’s Gym has locations throughout the country. Bratten is required to pay an additional fee of $5,700 for each month it operates under the Silver’s Gym name, with payments beginning in March 2018. Bratten also purchased $407,000 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 $26,000. 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.

1. Record the expenditures related to initial acquisitions in a General Journal.

Answer 1

purchasenale. 8 2,03,000 - To Cash ape symmetry corporation nie 72,07.000 Being the exclusive right to monfecture and sell x core workout machine from symmetry corporat 3 Legal and filing poosale - do 13,500 To Cash Ale [Bring Bratten paid an addtional in legal and filing - 9 Intial fees ALC - dr 280,000/ - To cash ale / 280,00 [Being an intial fees for a year agreement with sausilvers Gym to use its name for a new facility in the local area ] e Addtional fees ale (5700 x 12 months) .dr 68,40 To cash are 768, 400 [ Being Bratton is required to pay addtronal fees 15 foo for each month it wep operates under the Silvers 6 dr 4,07,000 purchase of exercise equipment ple To cashle Bring purchase of exercise equipment now facility 4:07.000 to be placed the It

③ purchase of right to sell book ale to sell book al . To cash Alc [Being the exclusive right to sell (26,000 Healthy chore abook 7