Question: As the recently appointed auditor for William J. Bryan Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June

As the recently appointed auditor for William J. Bryan Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2008, are prepared. The controller for William J. Bryan Corporation mentions that only one account is kept for Intangible Assets. The account is shown below.

Instructions
Prepare the entry or entries necessary to correct this account. Assume that the patent has a useful life of 10years.

Intangible Assets Debit 940.000 75,000 Credit Balance - 940,000 Jan. 4 Jan. 5 Jan. 31 Research and development costs Legal costs to obtain patent Payment of 7 months' rent on property 1,015,000 1,106,000 leased by Bryan Premium on common stock Unamortized bond discount on bonds 91,000 250,000 856,000 940,000 1,147,000 Feb. 11 March 31 due March 31, 2028 84,000 April 30 Promotional expenses related to 207,000 241,000 start-up of business June 30 Operating losses for first 6 months 1,388,000

Step by Step Solution

★★★★★

3.35 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Research and Development Expense 940000 Patents 75000 Rent Expense 5 7 X 91000 65000 Prepaid R... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

117-B-A-I-A (2156).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

GRW Company has the following account balances at the end of the year, before adjusting and closing entries. (All numbers are in thousands of dollars.) Required: Calculate and interpret the year-end...

As controller of Patriot Steel, you have been asked to provide information to management that would be helpful in answering a variety of questions. Required: a. For each of the questions below,...

As a securities analyst you have been asked to review a valuation of a closely held business, Wigwam Autoparts Heaven, Inc. (WAH), prepared by the Red Rocks Group (RRG). You are to give an opinion on...

You have been asked to investigate some cost problems in the Assembly Department of Ruthenium Electronics Co., a consumer electronics company. To begin your investigation, you have obtained the...

As the recently appointed auditor for William J. Bryan Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2014, are prepared. The...

(Correct Intangible Asset Account) As the recently appointed auditor for William J. Bryan Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June...

As the recently appointed auditor for William J. Bryan Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2014, are prepared. The...

Correct Intangible Assets Account) As the recently appointed auditor for William J. Bryan Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June...

23 E12-5 (Correct Intangible Assets Account) As the recently appointed auditor for William J. Bryan Corpo- 7 ration, you have been asked to examine selected accounts before the 6-month financial...

Question 5 ACC4250 (F) / Page 5 of 6 Newman Corporation's comparative balance sheets are presented below. NEWMAN CORPORATION Comparative Balance Sheets December 31 2010 2009 RM10,200 RM 17,700 25,200...

As the recently appointed auditor for Bryan Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2025, are prepared. The controller for...

With r = 1.0 and = 5.0, but without picking a value for a. How does the optimal absorption depend on ? Show that the rate of absorption is maximized at T = 1 with the absorption function A(T) = T...

The ability of the metals to be drawn into thin wires is known as ? Options: 1) conductivity 2) malleability 3) ductility 4) sonorousity

Question 6 Which one of these examples would the Sarbanes - Oxley Act not cover? An external board overseeing an accounting company 5 auding activities The CEO personally signing the firm 5 tax...

On January 1, 2018, Tarow Corporation had 80,000 common shares, recorded at $600,000, and retained earnings of $1 million. During the year, the following transactions occurred: Apr. 2 Issued 5,000...

Flight Caf is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The companys planning budget for July appears below: In July, 17,800 meals were...

Rose Axels faces a smooth annual demand for cash of $5,000,000, incurs transaction costs of $275 every time they sell marketable securities, and can earn 4.3 percent on their marketable securities....

A Statistics professor has observed that for several years students score an average of 105 points out of 150 on the semester exam. A salesman suggests that he try a statistics software package that...

The Sibelius Company was incorporated on 1 March X1. It carries a commercial activity. The following transactions were undertaken during the first month of operation of Sibelius Co. 1 March 1...

Classifying balance sheet accounts For each account listed, identify the category that it would appear on a classified balance sheet. Use the following categories: Current Assets, Long-term...

Nonmonetary Exchanges You has two clients that are considering trading machinery with each other. Although the machines are different from each other, you believe that an assessment of expected cash...

A bond is selling at $900 (below its par value of $1000). The bond matures in 10 years and has pays offers a 5% coupon rate. Interest is paid semi-annually. What is the bonds yield-to-maturity? A...

Sampler A has a useful life of 12 years, an initial cost of $12,141, an annual maintenance cost of $1800. Your net present worth of the life of the equipment is (-$18,266). Sampler B has an initial...

Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $30 million before interest per year in perpetuity, with each company...