EastCo commenced operations early in 2014. A number of expenditures were made during 2014 that were...

 

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EastCo commenced operations early in 2014. A number of expenditures were made during 2014 that were debited to one account called intangible assets. A summary of the $818,000 balance in this account at the end of 2014 is as follows: Date Transaction Amount Jan 31, 2014 Various Mar 17, 2014 The cost of searching for applications for a new research findings Advertising costs The cost of purchasing a patent from an inventor Research costs Purchase price of new software $19,000 21,000 ------------- 29,000 Mar 28, 2014 Apr 29, 2014 Apr 30, 2014 May 25, 2014 Jun 12, 2014 49,000 . . 32,000 Executive salaries for time spent on development of an intangible asset 147,000 Legal fee for successful defence of patent developed 14,000 500,000 Purchase the net identifiable assets of Northstar Corp. Fire insurance premium for two-year period. Total 7,000 $818,000 Dec 20, 2014 The purchase price of the Northstar Corp.'s net identifiable assets was debited to this account and were as follows: Receivables . Equipment Patents Total assets Notes payable assumed (240,000) Fair value of net assets $370,000 $110,000 380,000 120,000 610,000 Prepare the December 31, 2014 journal entries to: 1) Reclassify the various expenditures to the correct asset, liability, revenue or expense account as indicated by the transactions. 2) Reclassify the amount paid for Northstar Corp. to the correct accounts. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. General Journal Account/Explanation Page G2 PR Debit Credit Date 土二 EastCo commenced operations early in 2014. A number of expenditures were made during 2014 that were debited to one account called intangible assets. A summary of the $818,000 balance in this account at the end of 2014 is as follows: Date Transaction Amount Jan 31, 2014 Various Mar 17, 2014 The cost of searching for applications for a new research findings Advertising costs The cost of purchasing a patent from an inventor Research costs Purchase price of new software $19,000 21,000 ------------- 29,000 Mar 28, 2014 Apr 29, 2014 Apr 30, 2014 May 25, 2014 Jun 12, 2014 49,000 . . 32,000 Executive salaries for time spent on development of an intangible asset 147,000 Legal fee for successful defence of patent developed 14,000 500,000 Purchase the net identifiable assets of Northstar Corp. Fire insurance premium for two-year period. Total 7,000 $818,000 Dec 20, 2014 The purchase price of the Northstar Corp.'s net identifiable assets was debited to this account and were as follows: Receivables . Equipment Patents Total assets Notes payable assumed (240,000) Fair value of net assets $370,000 $110,000 380,000 120,000 610,000 Prepare the December 31, 2014 journal entries to: 1) Reclassify the various expenditures to the correct asset, liability, revenue or expense account as indicated by the transactions. 2) Reclassify the amount paid for Northstar Corp. to the correct accounts. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. General Journal Account/Explanation Page G2 PR Debit Credit Date 土二

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