These are selected 2022 transactions for Culver Corporation: Jan. 1 Purchased a copyright for $135,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $78,000. Sept. 1 Purchased a small company and recorded goodwill of $165,000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization required by the events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Dec 31 | Amortization expense - Copyright | 22,500 | |
Copyright | 22,500 | ||
(135,000/6) | |||
Dec 31 | Amortization expense - Patents | 16,250 | |
Patents (78,000/4)*10/12 | 16,250 | ||
Dec 31 | NO ENTRY |
These are selected 2022 transactions for Culver Corporation: Jan. 1 Purchased a copyright for $135,000. The...
These are selected 2022 transactions for Martinez Corporation: Jan. 1 Purchased a copyright for $105,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $54,000. Sept. 1 Purchased a small company and recorded goodwill of $135,000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization...
These are selected 2022 transactions for Blue Corporation: Jan. 1 Purchased a copyright for $84,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $27,000. Sept. 1 Purchased a small company and recorded goodwill of $114.000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization...
These are selected 2022 transactions for Novak Corporation: Jan. 1 Purchased a copyright for $111,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $48,000. Sept. 1 Purchased a small company and recorded goodwill of $141,000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization...
These are selected 2022 transactions for Bramble Corporation: Purchased a copyright for $153,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Jan. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $96,000. Mar. 1 Purchased a small company and recorded goodwill of $183,000. Its useful life is indefinite. Sept. 1 Prepare all adjusting entries at December 31 to record amortization...
These are selected 2017 transactions for Martinez Corporation: Jan. 1 Purchased a copyright for $162,500. The copyright has a useful life of 5 years and a remaining legal life of 33 years. Mar. 1 Purchased a patent with an estimated useful life of 6 years and a legal life of 21 years for $96,840. Sept. 1 Purchased a small company and recorded goodwill of $150,950. Its useful life is indefinite. Indicate the amount of amortization expense on December 31, 2017,...
Exercise 10-12 The following are selected 2020 transactions of Sheffield Corporation. Jan. 1 May 1 Purchased a small company and recorded goodwill of $198,000. Its useful life is indefinite. Purchased for $96,000 a patent with an estimated useful life of 4 years and a legal life of 15 years. Prepare necessary adjusting entries at December 31 to record amortization required by the events above. (Cre! red. Do not indent manually. If no entry is required, select "No entry" for the...
Pharoah Corporation has the following selected transactions during the year ended December 31, 2018: Jan. 1 Mar. 1 Purchased a copyright for $128,160 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Acquired a franchise with a contract period of nine years for $548,910; the expiration date is March 1, 2027. Paid cash of $41,980 and borrowed the remainder from the bank. Sept. Purchased a trademark for $74,360 cash. As the...
Culver Corporation purchases a patent from Sunland Company on January 1, 2020, for $78,000. The patent has a remaining legal life of 16 years. Culver feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Culver’s books is $62,400. In January, Culver spends $25,600 successfully defending a patent suit. Culver still feels the patent will be useful until the end of 2029. Prepare the journal entries to record...
The intangible assets section of Blue Corporation’s balance sheet at December 31, 2022, is presented here. Patents ($73,200 cost less $7,400 amortization) $65,800 Copyrights ($37,000 cost less $24,500 amortization) 12,500 Total $78,300 The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan. 2 Paid $36,000 legal costs...
The intangible assets section of Bramble Corporation's balance sheet at December 31, 2022 is presented here. Patents (579,900 cost less $7.990 amortization) Copyrights ($53,000 cost less $41,500 amortization) Total $73.400 11.500 $84.900 The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan. 2 Pald $36,000 legal costs...