Question

Transactions during 20X5, the first year of the newly organized Nancy’s Discount Foods Corporation, included the following:
2 Jan. Paid $ 12,000 lawyer’s fees and other related costs to register the name and trademark of the company in various jurisdictions.
31 Jan. Paid $ 5,500 for television commercials advertising the grand opening. This advertising increased customers’ awareness of the company name and location.
1 Feb. Paid $ 7,300 to an image consultant to create a logo and distinctive packaging.
1 May Acquired a patent from an existing patent holder for $ 20,200. The patent will not be used in the operations of the corporation but rather will be held as a long- term investment to produce royalty revenue.
1 Oct. Obtained a licence from the city to conduct operations in a specific location. The licence, which cost $ 12,000, runs for one year and is renewable.
1 Nov. Acquired another business and paid, after analysis, $ 35,000 cash for its goodwill. Recorded only the goodwill.
31 Dec. Paid $ 10,000 in legal fees in an unsuccessful patent defense related to the patent acquired on 1 May, which, as a result of the lawsuit, now appears to be questionable in its revenue- generating capacity.

Required:
Give the journal entry that Nancy should make for each of the above transactions.



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  • CreatedFebruary 17, 2015
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