Please refer the working attached below.
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Ivanhoe Limited organized late in 2019 and set up a single account for all intangible assets....
As the recently appointed auditar far Ivanhoc Corporation, you have been asked to cxaminc selected accounts before the six-month financial statements of June 30, 2020, are prepared. The controller for Ivanhoe Corporation mentions that only one account is kept for intangible assets. The cntries In Intangible Assets since January 1, 2020, are as follows: INTANGIBLE ASSETS Credit Jan 4 5 Debit 1,043 100 44.000 49.700 Balance 1043.100 1.084,100 1.138,200 843.300 1.000.300 1214.300 1538.300 Research posts Legal costs to obtain patent...
Exercise 9-9 a-b Ivanhoe Corporation has the following selected transactions during the year ended December 31, 2018: Jan. 1 Purchased a copyright for $112,260 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Mar. 1 Acquired a franchise with a contract period of nine years for $585,360; the expiration date is March 1, 2027. Paid cash of $36,670 and borrowed the remainder from the bank. Sept. 1 Purchased a trademark for...
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...
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...
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...
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...
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...
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...
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...