Hula Co. recorded the following amounts for 2019. These entries are already properly recorded in the journals. The company’s fiscal year ends December 31, 2019. Everything must be shown in the proper formatting

• Research and development costs, $45,000.
• Patent, acquired on January 1, 2019, with 10-year useful life, $31,500.
• Goodwill from the purchase of a company, $90,000.
• Acquired customer list with an indefinite useful life, $18,000.
• Legal fees paid on December 31, 2019, to register a patent (internally developed, 15-year useful life), $4,500.

1. Prepare any adjusting entries required by the above information as of 12/31/2019. Use proper format, and show any calculations.

2. Prepare a partial income statement (with a heading) reflecting the above transactions for the year ended December 31, 2019.

3. Prepare a partial balance sheet (with a heading) reflecting the above transactions as of December 31, 2019. Assume no asset is impaired. Clearly indicate under what category or categories each asset above would be reported.

Answer rating: 100% (QA)

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