Brush Company engaged in the following transactions at the beginning of 2019: a. Purchased a patent...
problem 12-13 mpuieu n 5 years. Brush hopes that the ferry will com Tomtu are expected to be only 20% of those earned before the bridge is opened. Paid $28,000 of legal costs to successfully defend the patent acquired in Transaction a. d Paid a racc car driver $50,000 to have the Brush Company name prominently displaycd on the race car Required: Prepare the journal entries to record the preceding transactions. 2 Prepare the journal entries to record the amortization...
On January 1, 2019, the Leaf Company purchased a patent for 70 000 The patent has a legal life of 20 years and an estimated useful life of 10 years INSTRUCTIONS: Prepare the journal entry to record 2019 amortization expense. 2) On October 1, 2019, Beaufort Mining Inc. purchased a new mine. Cost of the mine 640 000 Estimated tons of ore in this mine 500 000 tons Ore mined and sold during 2017 80 000 tons INSTRUCTIONS: Prepare the...
On January 2, 2018, David Corporation purchased a patent for $450,000. The remaining legal life is 10 years, but the company estimated that the patent will be useful only for Six years. In January 2020, the company incurred legal fees of $40,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Required: Prepare journal entries related to the patent for 2018, 2019, and 2020. (If no entry is required for...
Janes Company provided the following information on intangible assets: A patent was purchased from the Lou Company for $1,550,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $520,000 when Lou sold it to Janes. During 2021, a franchise was purchased from the Rink Company for $670,000. The contractual life of the franchise is 10 years and Janes...
Section E: Intangible Assets The following transactions of ASU Corporation occurred at January 1, 2019. Prepare the journal entry needed at January 1 to record this transaction and at December 31, 2019 to record any resultant amortization. If no entry is required, write "no entry needed." 1. On January 1, 2019, ASU's application for a patent was granted. Legal and registration costs incurred were $80,000. The patent legal life is 20 years. The manufacturing process will be useful to ASU...
Janes Company provided the following information on intangible assets: A patent was purchased from the Lou Company for $1,400,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $490,000 when Lou sold it to Janes. During 2021, a franchise was purchased from the Rink Company for $640,000. The contractual life of the franchise is 10 years and Janes...
how do I calculate the amortization expense on each asset? LO 12.2 treba Costs of hiring new employees 12,000 Attorney's fees in connection with the organization of the company 6,000 Improvements to leased offices prior to occupancy (10-year lease) 5,000 Costs of pre-opening advertising Required: 1. What amount should the company expense in 2019: In 2020 2. Next Level What is the justification of the accounting treatment of these costs? E12-11 Various Intangible Assets Barnum Company acquired several small companies...
LOA.5) P9-7A The intangible assets section of Sappelt Company at December 31, 2019, is presented below. Patents ($70,000 cost less $7,000 amortization) Franchises ($48,000 cost less $19,200 amortization) 28,800 $63,000 Total $91,800 The patent was acquired in January 2019 and has a useful life of 10 years. The franchise was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2020. Paid $27,00o legal costs to successfully...
Janes Company provided the following information on intangible assets:A patent was purchased from the Lou Company for $1,650,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $540,000 when Lou sold it to Janes.During 2021, a franchise was purchased from the Rink Company for $690,000. The contractual life of the franchise is 10 years and Janes records a...
Janes Company provided the following information on intangible assets: A patent was purchased from the Lou Company for $1,050,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $420,000 when Lou sold it to Janes. During 2021, a franchise was purchased from the Rink Company for $570,000. The contractual life of the franchise is 10 years and Janes...