During 2016, Flint Corporation spent $171,360 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $45,360 related to the patent were incurred as of October 1, 2016.
Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account titles are automatically indented when 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.)
Date |
Account Titles and Explanation |
Debit |
Credit |
---|---|---|---|
2016 |
enter an account title to record research and development expenses |
enter a debit amount |
enter a credit amount |
enter an account title to record research and development expenses |
enter a debit amount |
enter a credit amount |
|
(To record research and development expenses) |
|||
2016 |
enter an account title to record legal expenses |
enter a debit amount |
enter a credit amount |
enter an account title to record legal expenses |
enter a debit amount |
enter a credit amount |
|
(To record legal expenses) |
|||
2016 |
enter an account title to record amortization expense |
enter a debit amount |
enter a credit amount |
enter an account title to record amortization expense |
enter a debit amount |
enter a credit amount |
|
(To record amortization expense) |
|||
2017 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
On June 1, 2018, Flint spent $11,160 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2018. Prepare all journal entries required in 2018 and 2019. (Credit account titles are automatically indented when 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.)
Date |
Account Titles and Explanation |
Debit |
Credit |
---|---|---|---|
2018 |
enter an account title to record patents |
enter a debit amount |
enter a credit amount |
enter an account title to record patents |
enter a debit amount |
enter a credit amount |
|
(To record patents) |
|||
2018 |
enter an account title to record amortization expense |
enter a debit amount |
enter a credit amount |
enter an account title to record amortization expense |
enter a debit amount |
enter a credit amount |
|
(To record amortization expense) |
|||
2019 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
In 2020, Flint determined that a competitor’s product would make the New Age Piano obsolete and the patent worthless by December 31, 2021. Prepare all journal entries required in 2020 and 2021. (Credit account titles are automatically indented when 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.)
Account Titles and Explanation |
Debit |
Credit |
---|---|---|
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
Date | Accounts Titles and Explanation | Debit | Credit | |||
2016 | ||||||
Oct 1 | Research and Development Expense | $171,360 | ||||
Cash | $171,360 | |||||
(To record research and development expenses) | ||||||
Oct 1 | Patent | $45,360 | ||||
Cash | $45,360 | |||||
(To record legal expenses) | ||||||
Dec 31 | Amortization Expense | $1,134 | ($45,360 x 1/10 x 3/12) | |||
Accumulated Amortisation -Patent | $1,134 | |||||
(To record amortization of patents) | ||||||
2017 | ||||||
Dec 31 | Amortization Expense | $4,536 | ($45,360 x 1/10) | |||
Accumulated Amortisation -Patent | $4,536 | |||||
(To record amortization of copyrights) | ||||||
2018 | ||||||
June 1 | Patent | $11,160 | ||||
Cash | $11,160 | |||||
(To record patents) | ||||||
Dec 31 | Amortization Expense | $2,380 | Jan. 1–June 1: | ($45,360 x 1/10 x 5/12) | $1,890 | |
Accumulated Amortisation -Patent | $2,380 | June 1–Dec. 31: | ($45,360 - $1,134 - $4,536 - $1,890 + $11,160) | |||
(To record amortization of patents) | $48,960 x 1/12 x 7/12 | 2380 | ||||
2019 | ||||||
Dec 31 | Amortization Expense | $4,080 | ($48,960 x 1/12) | |||
Accumulated Amortisation -Patent | $4,080 | |||||
(To record amortization of copyrights) | ||||||
2020 and 2021 | ||||||
Amortization Expense | $21,250 | |||||
Accumulated Amortisation -Patent | $21,250 | |||||
($48,960 - $2,380 - $4,080)/2 | ||||||
During 2016, Flint Corporation spent $171,360 in research and development costs. As a result, a new...
During 2016, Cheyenne Corporation spent $149,760 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $23,760 related to the patent were incurred as of October 1, 2016. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account...
During 2016, Marigold Corporation spent $154,080 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $28,080 related to the patent were incurred as of October 1, 2016. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account...
During 2016, Riverbed Corporation spent $162,720 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $36,720 related to the patent were incurred as of October 1, 2016. Your answer is correct. Prepare all journal entries required in 2016 and 2017 as a result of the...
During 2016, Blue Corporation spent $177,120 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $49,680 related to the patent were incurred as of October 1, 2016. On June 1, 2018, Blue spent $11,880 to successfully prosecute a patent infringement suit. As a result, the...
During 2016, Culver Corporation spent $169,920 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $45,360 related to the patent were incurred as of October 1, 2016. Prepare all iournal entries required in 2016 and 2017 as a result of the transactions above. (Credit account...
During 2016, Concord Corporation spent $168,480 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $41,040 related to the patent were incurred as of October 1, 2016. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account...
During 2016, Grouper Corporation spent $152,640 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $28,080 related to the patent were incurred as of October 1, 2016. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account...
During 2016, Swifty Corporation spent $174,240 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $49,680 related to the patent were incurred as of October 1, 2016 Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account...
During 2016, Blue Corporation spent $177,120 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $49,680 related to the patent were incurred as of October 1, 2016 Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account...
During 2016, Pina Corporation spent $159,840 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $32,400 related to the patent were incurred as of October 1, 2016. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account...