Question

Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by Goslin Company in 2014.
1. Goslin developed a new manufacturing process, incurring research and development costs of $110,000. The company also purchased a patent for $70,000. In early January, Goslin capitalized $180,000 as the cost of the patents. Patent amortization expense of $9,000 was recorded based on a 20-year useful life.
2. On July 1, 2014, Goslin purchased a small company and as a result acquired goodwill of $200,000. Goslin recorded a half-year's amortization in 2014, based on a 40-year life ($2,500 amortization). The goodwill has an indefinite life.

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



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  • CreatedDecember 29, 2012
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