Amarista Corporation has the following selected transactions during the year ended December 31, 2018: Jan. 1 Purchased

Question:

Amarista Corporation has the following selected transactions during the year ended December 31, 2018:

Jan. 1 Purchased a copyright for $120,000 cash. The copyright has a useful life of six years and a remaining legal life of 30 years.

Mar. 1 Acquired a franchise with a contract period of nine years for $540,000; the expiration date is March 1, 2027. Paid cash of $40,000 and borrowed the remainder from the bank.

Sept. 1 Purchased a trademark for $75,000 cash. As the purchase was being finalized, spent $35,000 cash in legal fees to successfully defend the trademark in court.

Instructions

(a) Prepare the entries to record the above transactions.

(b) Prepare the entries to record any amortization at December 31.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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