Sandhill Co., organized in 2019, has set up a single account for
all intangible assets. The following summary discloses the debit
entries that have been recorded during 2020 and 2021.
Intangible Assets |
||||
7/1/20 | 8-year franchise; expiration date 6/30/28 | $60,000 | ||
10/1/20 | Advance payment on laboratory space (2-year lease) | 26,400 | ||
12/31/20 | Net loss for 2020 including state incorporation fee, $1,000, | |||
and related legal fees of organizing, $5,000 (all fees incurred in 2020) | 12,400 | |||
1/2/21 | Patent purchased (10-year life) | 84,400 | ||
3/1/21 | Cost of developing a secret formula (indefinite life) | 85,000 | ||
4/1/21 | Goodwill purchased (indefinite life) | 277,000 | ||
6/1/21 | Legal fee for successful defense of patent purchased above | 12,995 | ||
9/1/21 | Research and development costs | 180,000 |
Prepare the necessary entries to clear the Intangible Assets
account and to set up separate accounts for distinct types of
intangibles. Make the entries as of December 31, 2021, recording
any necessary amortization
Sandhill Co., organized in 2019, has set up a single account for all intangible assets. The...
Problem 12-01 Cullumber Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. 7/1/20 10/1/20 12/31/20 $43,200 28,200 Intangible Assets 8-year franchise; expiration date 6/30/28 Advance payment on laboratory space (2-year lease) Net loss for 2020 including state incorporation fee, $1,500, and related legal fees of organizing, $5,500 (all fees incurred in 2020) Patent purchased (10-year life) Cost of developing a...
PROBLEMS 2 3 P12-1 (Correct Intangible Assets Account) Reichenbach Co, organized in 2014, has set up a single ac- count for all intangible assets. The following summary discloses the debit entries that have been recorded 榭 during 2014 and 2015. Intangible Assets 8-year franchise; expiration date 6/30/22 10/1/14 Advance payment on laboratory space (2-year lease) 12/31/14 Net loss for 2014 including governmental incorporation 48,000 24,000 fee, 1,000, and related legal fees of organizing 5,000 (all fees incurred in 2014) Patent...
Sheridan Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) $357,600 4/1/20 Purchase goodwill (indefinite life) 357,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 437,000 8/1/20 Payment of copyright (5-year life) 164,400 9/1/20 Research and development costs 227,000 $1,543,000 (a1) Prepare the necessary entry to clear the Intangible Assets account and to set up separate...
Sheridan Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) $357,600 4/1/20 Purchase goodwill (indefinite life) 357,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 437,000 8/1/20 Payment of copyright (5-year life) 164,400 9/1/20 Research and development costs 227,000 $1,543,000 Make the entry as of December 31, 2020, recording any necessary amortization Reflect all balances as...
Crane Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (9-year life) 4/1/20 Purchase goodwill (indefinite life) on date 7/1/30 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 8/1/20 Payment of copyright (5-year life) 9/1/20 Research and development costs $407,700 363,000 443,000 171,600 233,000 $1,618,300 Prepare the necessary entry to clear the Intangible Assets account and to set...
Wildhorse Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) 4/1/20 Purchase goodwill (indefinite life) 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 8/1/20 Payment of copyright (5-year life) 9/1/20 Research and development costs $360,800 361,000 441,000 169,200 231,000 $1,563,000 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts...
Ivanhoe Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (7-year life) $310,800 4/1/20 Purchase goodwill (indefinite life) 354,000 434,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 160,800 8/1/20 Payment of copyright (5-year life) Research and development costs 9/1/20 224,000 $1,483,600 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts...
1- Sunland Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (7-year life) $305,900 4/1/20 Purchase goodwill (indefinite life) 347,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 427,000 8/1/20 Payment of copyright (5-year life) 152,400 9/1/20 Research and development costs 217,000 $1,449,300 a:Prepare the necessary entry to clear the Intangible Assets account and to set up separate...
Cullumber Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) $354,400 4/1/20 Purchase goodwill (indefinite life) 353,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 433,000 8/1/20 Payment of copyright (5-year life) 159,600 9/1/20 Research and development costs 223,000 $1,523,000 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts...
Cullumber Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) $354,400 4/1/20 Purchase goodwill (indefinite life) 353,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 433,000 8/1/20 Payment of copyright (5-year life) 159,600 9/1/20 Research and development costs 223,000 $1,523,000 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts...