Homework Answers
Journal Entry to Record the Purchase of Intangible Assets
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
Jan 2, 2022 |
Patents |
$ 308750 |
|
|
Cash |
$ 308750 |
||
|
April 1, 2022 |
Goodwill |
$ 342000 |
|
|
Cash |
$ 342000 |
||
|
July 1, 2022 |
Franchise |
$ 684000 |
|
|
Cash |
$ 684000 |
||
|
Sept 1, 2022 |
Research and Development Expenses |
$ 175750 |
|
|
Cash |
$ 175750 |
Journal Entry on December 31, 2022
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
Dec 31, 2022 |
Amortization Expense-Patents(Note below) |
$ 61750 |
|
|
Patents |
$ 61750 |
||
|
Dec 31, 2022 |
Amortization Expense-Franchise(Note below) |
$ 38000 |
|
|
Franchise |
$ 38000 |
Note:
Amortization=Cost * Period of use/Useful Life
- Patents=$ 308750/5 years=$ 61750
- Franchise=$ 684000/9 years*6 months/12 months=$ 38000
Ending Balances on 12/31/22:
Patents:$ 247000
Goodwill:$ 342000( Intangible assets with infinite life cannot be amortized)
Franchise:$ 610000
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transactions related to intangible assets in that year:
Jan. 2
Purchased a patent (5-year life)
$276,000
Apr. 1
Goodwill purchased as part of an acquisition of another
company
$331,000
Jul. 1
Acquired a 9-year franchise; expiration date July 1, 2025
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franchise be $161,000 and $483,000 respectively. There was no
indication that the goodwill was impaired.
(a)
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pls
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Gladow Corporation began operations in 2020 and has these
transactions related to intangible assets in that year:
Jan. 2
Purchased a patent (5-year life)
$276,000
Apr. 1
Goodwill purchased as part of an acquisition of another
company
$331,000
Jul. 1
Acquired a 9-year franchise; expiration date July 1, 2025
$496,800
Dec. 31
Determined that the recoverable amount of the patent and
franchise be $161,000 and $483,000 respectively. There was no
indication that the goodwill was impaired.
(a)
Your answer is...
Gladow Corporation began operations in 2020 and has these transactions related to intangible assets in that year: Jan. 2 Purchased a patent (5-year life) Apr. 1 Goodwill purchased as part of an acquisition of another company Jul. 1 Acquired a 9-year franchise; expiration date July 1, 2025 Dec. 31 Determined that the recoverable amount of the patent and franchise to be $217,000 and $651,000 respectively. There was no indication that the goodwill was impaired. $372,000 $446,000 $669,600 (a) Prepare the...
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...
The intangible assets section of Marigold Corporation's balance sheet at December 31, 2022, is presented here. Patents ($71,800 cost less $7,180 amortization) $63,400 Copyrights ($50,500 cost less $39,400 amortization) 11,100 $74,500 Total 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 Paid $45,000 legal costs to...
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help w d part
Gladow Corporation began operations in 2020 and has these transactions related to intangible sets in that year Jan. 2 Purchased a patent (5-year life) Apr. 1 Goodwill purchased as part of an acquisition of another company M 1 Acquired a 9-year franchise; expiration date July 1, 2025 Dec. 31 Determined that the recoverable amount of the patent and franchise to be $150,000 and 5473,000 respectively. There was no indication that the goodwill was impaired. $270,000...
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...
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