Question: Due to rapid turnover in the accounting department a number 158382

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.

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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