Exercise 7-4 (Static) Record expenditures related to intangibles (LO7-2) Micro Facilities incurs the following costs during...
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Exercise 7-4 (Static) Record expenditures related to intangibles (LO7-2) Micro Facilities incurs the following costs during the year. A new patent is purchased for $600,000 from Techno Company. The patent gives Micro exclusive right to sell specialized data storage units. Internal costs of $500,000 were used to research and develop a new high-resolution monitor. The company expects production to begin next year, and sales to customers to occur over the next five years. • An integrated sound component for video capture processes is developed using internal resources at a cost of $450,000. By the end of the year, the company applies for and receives a patent on the sound component. Advertising costs of $250,000 were used in the current year to promote the company's products and services, including those expected to be released next year. Required: Record the expenditures. Assume all expenditures were paid in cash. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 A new patent is purchased for $600,000 from Techno Company. The patent gives Micro exclusive right to sell specialized data storage units. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general joumal Exercise 7-4 (Static) Record expenditures related to intangibles (LO7-2) Micro Facilities incurs the following costs during the year. A new patent is purchased for $600,000 from Techno Company. The patent gives Micro exclusive right to sell specialized data storage units. Internal costs of $500,000 were used to research and develop a new high-resolution monitor. The company expects production to begin next year, and sales to customers to occur over the next five years. • An integrated sound component for video capture processes is developed using internal resources at a cost of $450,000. By the end of the year, the company applies for and receives a patent on the sound component. Advertising costs of $250,000 were used in the current year to promote the company's products and services, including those expected to be released next year. Required: Record the expenditures. Assume all expenditures were paid in cash. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 A new patent is purchased for $600,000 from Techno Company. The patent gives Micro exclusive right to sell specialized data storage units. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general joumal
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Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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