Homework Answers
(a) Entry for purchase of patent :
Patent a/c debit $600,000.
To Cash / Bank A/c. $600,000.
(b) Amortisation : (legal protection for 20 years) >> 600,000/20 = 30,000 per annum
Amortisation expenses -Patents $30,000
To Patents account $30,000
(c) Impairment Loss on Patents ac. debit 270,000 (see calculations below)
To Patents account 270,000
(Value of patents at end of 4 years = 600000-120000=480,000)
Expected future value = 210,000
Impairment = 480,000-210,000=270,000
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Requirement 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for year 1. (Record d...
Requirements 1. Make journal entries to record (a) the purchase of the patent and (b) amortization...
Requirements 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for year 1. 2. Once Murley learned of the competing printer and adjusted the expected future cash flows from its original patent, was this asset impaired? If so, make the impairment adjusting entry. Print [Done Print Done Murley Printers incurred external costs of $1,400,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected...
1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of...
1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year. 2. After using the patent for four years, MP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, MP decides, starting with Year 5, to amortize the remaining cost of the patent over two remaining years, giving the patent a total...
E7-33A (similar to) Murley Printers incurred external costs of $700,000 for a patient for a new...
E7-33A (similar to) Murley Printers incurred external costs of $700,000 for a patient for a new laser printer. Although the palent gives legal protection for 20 years, it was expected to provide Murly with a competitive advantage for only fourteen years due to expected technological advances in the industry. Murley uses the straight line method of amortization Click the icon to view additional information) Read the recitements. Requirement 2. Once Murley lowed of the competing printer and adjusted the expected...
Murphy Printers incurred external costs of $700,000 for a patent for a new laser printer. Although...
Murphy Printers incurred external costs of $700,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected to provide Murphy with a competitive advantage for only seven years due to expected technological advances in the industry. Murphy uses the straight-line method of amortization (Click the icon to view additional information.) Read the requirements Requirement 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for...
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Makon Printers incurred external costs of $800,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected to provide Makon with a competitive advantage for only ten years due to expected technological advances in the industry. Makon uses the straight-line method of amortization. (Click the icon to view additional information.) Read the requirements. Requirement 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for...
Melbourn Printers (MP) manufactures printers. Assume that MP recently paid $200,000 for a new patent on...
Melbourn Printers (MP) manufactures printers. Assume that MP
recently paid $200,000 for a new patent on a new laser printer.
Although it gives legal protection for 20 years, the patent is
expected to provide a competitive advantage for only 8 years.
Requirment 1. Assuming the straight-line method of
amortization, make journal entries to record (a) the purchase of
the patent and (b) amortizatiom for the first full year. (Record
debits first, then credits. Select the explanation on the last line...
Mayler Printers (MP) manufactures printers. Assume that MP recently paid $300,000 for a patent on a new laser print...
Mayler Printers (MP) manufactures printers. Assume that MP recently paid $300,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is hxpected to provide a competitive advantage for only ten years. Read the requirement Requirement 1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patient and (b) amortization for the first full year. (Record del first, then credits. Select the explanation on the...
E10-25 (similar to) F Murphy Printers (MP) manufactures printers. Assume that MP recently paid $700.000 for...
E10-25 (similar to) F Murphy Printers (MP) manufactures printers. Assume that MP recently paid $700.000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only ten years. Requirements Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year. After using the patent for five years, MP learns at...
miracle printers (MP) manufactures printers. Assume that MP Recently paid $300,000 for a patent on a...
miracle printers (MP) manufactures printers. Assume that MP
Recently paid $300,000 for a patent on a new laser printer.
Although it gives legal protection for 20 years, the patent is
expected to provide a competitive advantage for only eight years.
after using the patent for four years MP learns at an industry
trade show that another company is designing a more efficient
printer. On the basis of this new information, MP decides, starting
with year five, to amortize the remaining...
On February 1, 2018 Soggy Company purchased a patent for $144,000 cash. Although the patent gives...
On February 1, 2018 Soggy Company purchased a patent for $144,000 cash. Although the patent gives legal protection for 20 years, the patent is expected to be used for only four years Read the requirements Requirement 1. Journalize the purchase of the patent. (Record debits first, then credits Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Fob 1 144.000 Patent Cash 144,000 To record purchase of patent Requirement 2. Journalize...
Requirements 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for year 1. 2. Once Murley learned of the competing printer and adjusted the expected future cash flows from its original patent, was this asset impaired? If so, make the impairment adjusting entry. Print [Done Print Done Murley Printers incurred external costs of $1,400,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected...
1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year. 2. After using the patent for four years, MP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, MP decides, starting with Year 5, to amortize the remaining cost of the patent over two remaining years, giving the patent a total...
E7-33A (similar to) Murley Printers incurred external costs of $700,000 for a patient for a new laser printer. Although the palent gives legal protection for 20 years, it was expected to provide Murly with a competitive advantage for only fourteen years due to expected technological advances in the industry. Murley uses the straight line method of amortization Click the icon to view additional information) Read the recitements. Requirement 2. Once Murley lowed of the competing printer and adjusted the expected...
Murphy Printers incurred external costs of $700,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected to provide Murphy with a competitive advantage for only seven years due to expected technological advances in the industry. Murphy uses the straight-line method of amortization (Click the icon to view additional information.) Read the requirements Requirement 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for...
Makon Printers incurred external costs of $800,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected to provide Makon with a competitive advantage for only ten years due to expected technological advances in the industry. Makon uses the straight-line method of amortization. (Click the icon to view additional information.) Read the requirements. Requirement 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for...
Melbourn Printers (MP) manufactures printers. Assume that MP
recently paid $200,000 for a new patent on a new laser printer.
Although it gives legal protection for 20 years, the patent is
expected to provide a competitive advantage for only 8 years.
Requirment 1. Assuming the straight-line method of
amortization, make journal entries to record (a) the purchase of
the patent and (b) amortizatiom for the first full year. (Record
debits first, then credits. Select the explanation on the last line...
Mayler Printers (MP) manufactures printers. Assume that MP recently paid $300,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is hxpected to provide a competitive advantage for only ten years. Read the requirement Requirement 1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patient and (b) amortization for the first full year. (Record del first, then credits. Select the explanation on the...
E10-25 (similar to) F Murphy Printers (MP) manufactures printers. Assume that MP recently paid $700.000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only ten years. Requirements Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year. After using the patent for five years, MP learns at...
miracle printers (MP) manufactures printers. Assume that MP
Recently paid $300,000 for a patent on a new laser printer.
Although it gives legal protection for 20 years, the patent is
expected to provide a competitive advantage for only eight years.
after using the patent for four years MP learns at an industry
trade show that another company is designing a more efficient
printer. On the basis of this new information, MP decides, starting
with year five, to amortize the remaining...
On February 1, 2018 Soggy Company purchased a patent for $144,000 cash. Although the patent gives legal protection for 20 years, the patent is expected to be used for only four years Read the requirements Requirement 1. Journalize the purchase of the patent. (Record debits first, then credits Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Fob 1 144.000 Patent Cash 144,000 To record purchase of patent Requirement 2. Journalize...
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