On January 1, 2022, Oriole Company had a balance of $397,000 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions. Jan. 2 Purchased a patent (7-year life) $292,950. July 1 Sept. 1 (a) Your answer is correct. Acquired a 10-year franchise; expiration date July 1, 2032, $568,800. Research and development costs $181,500. Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date 1/2/22 + Account Titles and Explanation Patents Debit 292950 Credit
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- On January 1, 2025, Crane Company had a balance of $374,400 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2025, the company had the following additional transactions. Jan. 2 Purchased a patent (5-year life) $291,200. Acquired a 9-year franchise; expiration date July 1, 2034, $561,600. Research and development costs $192,400. 1 July Sept. 1 Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (List debit entry before credit entry. Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit.On January 1, 2025, Oriole Company had a balance of $316800 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2025, the company had the following additional transactions Jan July Sept. 1 2 Purchased a patent (5-year life) $246,400 1 Acquired a 9-year franchise; expiration date July 1, 2034, $475,200 Research and development costs $162,800 Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash (List debit entry before credit entry Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date: Account Titles and Explanation eTextbook and Media List of Accounts Debit CreditQuestion bord Date an 1 ept. 1 Mar. 1 ept. 1 Question 6 of 6 K.31 ept. 1 ✓ Account Titles and Explanation Cost of Goods Sold Cash Cash expenses cash Bank Loan Payable Cash Trademarks (To record purchase of trademark) Cash Trademarks (To record purchase of trademark) Trademarks (To record costs incurred to defend trademark) Advertising Expense Accounts Receivable Furniture Leasehold Improvements Cash Debit 117480 500850 106340 106340 106340 640000 Credit 117400 462000 106340 306340 38820 106340 106340 10000 58000 170000 320000 92000 P SUP
- Pharoah Limited organized late in 2019 and set up a single account for all intangible assets. The following summary shows the entries in 2020 (all debits) that have been recorded in Intangible Assets since then: Jan. 2 3 1 Apr. 1 July 1 1 Mar. Purchased patent (8-year life) Costs to search for new ways to apply patent that was purchased on Jan. 2 Purchased goodwill (indefinite life) Purchased franchise with 10-year life; expiration date July 1, 2030 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 Aug. 1 Payment for copyright (5-year life) 1 Purchased trademark (3-year life) 1 Purchased customer list (2-year life) Sept 1 Research costs $338,000 21,000 307,000 259,000 33,000 142,800 14,400 9,600 236,000 $1,360,8 00 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles.Sami company acquired a patent on October 1, 2020. Sami paid cash of $55,000 to the seller. registration fees of $5,000 were paid related to the acquisition. On the same date, Sami paid $5,000 advertising expense. The patent has a useful life of 10 years. What is the amount of patent to be reported at the statement of financial position on 31/12/2021? a- 55000 b- 60000 c- 50000 d- 52500Springer Company had three Intangible assets at the end of 2020 (end of the accounting year): a. A copyright purchased on January 1, 2020, for a cash cost of $15,700. The copyright is expected to have a 10-year useful lIife to Springer. b. Goodwill of $77,000 from the purchase of the Hartford Company on July 1, 2019. CA patent purchased on January 1, 2019, for $56,000. The inventor had registered the patent with the U.S. Patent and Trademark Office on January 1, 2015. Springer intends to use the patent for its remalning life. Required: 1. Compute the amortization expense of each intangible for the year ended December 31, 2020. The company does not use contra- accounts. 2a. Show how the expenses related to the three intangible assets should be reported on the Income statement for 2020. 2b. Show how the three intangible assets should be reported on the balance sheet for 2020. (Assume there has been no Impairment of goodwill.)
- Springer Company had three intangible assets at the end of 2023 (end of the accounting year): a. A copyright purchased on January 1, 2023, for a cash cost of $15,600. The copyright is expected to have a 10-year useful life to Springer. b. Goodwill of $76,000 from the purchase of the Hartford Company on July 1, 2022. c. A patent purchased on January 1, 2022, for $54,000. The inventor had registered the patent with the U.S. Patent and Trademark Office on January 1, 2018. Springer intends to use the patent for its remaining life. Required: 1. Compute the amortization expense of each intangible for the year ended December 31, 2023. The company does not use contra- accounts. 2a. Show how the expenses related to the three intangible assets should be reported on the income statement for 2023. 2b. Show how the three intangible assets should be reported on the balance sheet for 2023. (Assume there has been no impairment of goodwill.) Complete this question by entering your answers in the tabs…These are selected 2027 transactions for Indigo Corporation: Jan. 1 Mar. 1 Sept. 1 Purchased a copyright for $210,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Purchased a patent with an estimated useful life of 5 years and a legal life of 24 years for $71,400. Purchased a small company and recorded goodwill of $152,450. Its useful life is indefinite. Indicate the amount of amortization expense on December 31, 2027, for Indigo Corporation. Amortization expense $A trademark was purchased from Jordan Company for P120,000 on July 1, 20x1. Expenditures forsuccessful litigation in defense of the trademark totaling P30,000 were paid on July 1, 20x4.Management estimates that the useful life of the trademark will be 20 years from the date of acquisition 8. What is the carrying amount of the trademark on December 31, 20x4?
- Kleen Company acquired patent rights on January 10 of Year 1 for $344,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $17,000. If required, round your answers to the nearest dollar. Question Content Area a. Determine the patent amortization expense for Year 4 ended December 31.$fill in the blank 88c643fcdfe1040_1 Feedback Area Feedback For intangible assets with finite lives, a company uses the straight-line method to calculate amortization. If a company successfully defends a patent it becomes part of the cost of the patent. If the company loses a lawsuit regarding a patent infringement, then the patent is written off. Question Content Area b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank. blank Amortization Expense-Patents…These are selected 2025 transactions for Swifty Corporation: Jan. 1 Purchased a copyright for $144,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Sept. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $87,024. Purchased a small company and recorded goodwill of $174,000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization required by the events. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Dec. 31 Amortization Expense Copyrights (To record amortization of Copyrights) Dec. 31 Amortization Expense Patents (To record amortization of Patents) Dec. 31 Amortization Expense Goodwill (To record amortization of Goodwill) Debit 24000…These are selected 2027 transactions for Pronghorn Corporation: Jan. 1 Mar. 1 Sept. 1 Purchased a copyright for $160,800. The copyright has a useful life of 6 years and a remaining legal life of 35 years. Purchased a patent with an estimated useful life of 5 years and a legal life of 20 years for $90,000. Purchased a small company and recorded goodwill of $150.200. Its useful life is indefinite. Indicate the amount of amortization expense on December 31, 2027. for Pronghorn Corporation. Amortization expense S