Jan. 2 Purchased a patent (7-year life) $308,900. Apr. 1 July 1 Sept. 1 Research and...

Transcribed Image Text:

Jan. 2 Purchased a patent (7-year life) $308,900. Apr. 1 July 1 Sept. 1 Research and development costs $180,700. Goodwill acquired as a result of purchased business (indefinite life) $336,100. Acquired a 8-year franchise; expiration date July 1, 2022, $568,800. Your answer is correct. Prepare the necessary entries to record these transactions related to intangibles. All costs incurred were for cash. (Rec automatically indented when amount is entered. Do not indent manually.) Credit Date Account Titles and Explanation 1/2/14 Patents Cash 4/1/14 Goodwill Cash 7/1/14 Franchise Cash 9/1/14 Research and Development Expense 180,700 Cash Your answer is partially correct. Try again. Make an entry as of December 31, 2014, recording any necessary amortization. (Round answers to 0 decimal place not indent manually.) Account Titles and Explanation Amortization Expense Patents Franchise Patent Debit 308,900 336,100 568,800 Debit 308,900 336,100 568,800 180,700 Credit X Your answer is incorrect. Try again. Indicate what the intangible asset account balances should be on December 31, 2014. Jan. 2 Purchased a patent (7-year life) $308,900. Apr. 1 July 1 Sept. 1 Research and development costs $180,700. Goodwill acquired as a result of purchased business (indefinite life) $336,100. Acquired a 8-year franchise; expiration date July 1, 2022, $568,800. Your answer is correct. Prepare the necessary entries to record these transactions related to intangibles. All costs incurred were for cash. (Rec automatically indented when amount is entered. Do not indent manually.) Credit Date Account Titles and Explanation 1/2/14 Patents Cash 4/1/14 Goodwill Cash 7/1/14 Franchise Cash 9/1/14 Research and Development Expense 180,700 Cash Your answer is partially correct. Try again. Make an entry as of December 31, 2014, recording any necessary amortization. (Round answers to 0 decimal place not indent manually.) Account Titles and Explanation Amortization Expense Patents Franchise Patent Debit 308,900 336,100 568,800 Debit 308,900 336,100 568,800 180,700 Credit X Your answer is incorrect. Try again. Indicate what the intangible asset account balances should be on December 31, 2014.

Answer rating: 100% (QA)

Entry as of dec 312014for amortization amortization a... View the full answer