Question: Due to rapid turnover in the accounting department a number 158373

Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by the Buek Company in 2014.
1. Buek developed a new manufacturing process, incurring research and development costs of $147,000. The company also purchased a patent for $60,000. In early January, Buek capitalized $207,000 as the cost of the patents. Patent amortization expense of $10,350 was recorded based on a 20-year useful life.
2. On July 1, 2014, Buek purchased a small company and as a result acquired goodwill of $80,000. Buek recorded a half-year's amortization in 2014, based on a 50-year life ($800 amortization). The goodwill has an indefinite life.

Prepare all journal entries necessary to correct any errors made during 2014. Assume the books have not yet been closed for 2014.

  • CreatedDecember 29, 2012
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