journal entries
Q: On January 1, 2020, Scholastic Company acquired a building to be held as investment property in a…
A: In order to determine the carrying value of the building the accumulated depreciation is required to…
Q: The patent was acquired in January 1, 2019 and has a useful life of 10 years. The franchise was…
A: Legal cost to successfully defend the patent against infringement by another company is amortized…
Q: The following information concerns the intangible assets of Epstein Corporation: a. On June 30,…
A: 1.Adjusting journal entries for amortization expenses on the intangible assets are as follows:
Q: Lake Company, organized in 2020, has the following transactions related to intangible assets in that…
A: The question is related to Intangible Assets. The intangible assets will be amortised over a period…
Q: What is the depreciation expense for 2024?
A: Sum-of-the-years' digits is an accelerated method for determining an asset's expected depreciation…
Q: The following information relates to the intangible assets of Lettuce Express: On January 1, 2021,…
A: The intangible assets are the assets that can not be seen or physically touched.
Q: Record amortization expense for the intangible assets at December 31, 2021
A: Transaction General Journal Debit Credit a. "No Journal Entry Required"…
Q: ) Young Company has provided information on intan- gible assets as follows. A patent was purchased…
A: The amortization cost for the year 2019 is $100,000. The amortization cost of patent is calculated…
Q: On January 1, 2022, Annie Company purchased a mineral mine for P26,400,000 with removable ore…
A: Lets understand the basics. As per IFRS 6 "Exploration for and evaluation of mineral resources",…
Q: GGG Company ventured into construction of a condominium in Baguio which is rated as the largest…
A: IAS/IFRS 16 allowa an entity use either cost model or fair value model to record depreciation for a…
Q: On January 1, 2015, Schielanie company acquired a building to be held as investment property in a…
A: On January 1, 2015, Schielanie company acquired a building to be held as investment property in a…
Q: Janes Company provided the following information on intangible assets: A patent was purchased from…
A: Solution:- 1)Preparation of the entries necessary for years 2019 through 2021 to reflect the above…
Q: what is the carrying value of the intangible assts at December 31, 2020?
A: Carrying Value of intangible assets is shown in the balance sheet part where Calculation of the…
Q: During the current year, Black Corporation incurred the following expenditures which should be…
A: Intangible assets are the assets which cannot be touched or felt physically because they include…
Q: On January 1, 2020, Downtown Company acquired the following intangible assets: A trademark for…
A: Impairment of Asset: It is the reduction in the market value of an asset and its recoverable…
Q: Bluestone Company had three intangible assets at the end of the current year: A patent purchased…
A: Assets that generate benefits for an entity but doesn’t have any physical existence are called…
Q: Pharoah Corp., reporting under ASPE, has provided the following information regarding its intangible…
A: Working: 1 Purchase cost of patent 1,100,000 Less: Amortization for 2019 ($1,100,000/10)…
Q: GGG Company ventured into construction of a condominium in Baguio which is rated as the largest…
A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS journal entry under fair value model
Q: Marigold Corp., organized in 2020, has the following transactions related to intangible assets.…
A: A patent is the conceding of a right to the of a property by the government to the inventor.Goodwill…
Q: Munn Inc. has transactions and other information relating to intangible assets as follows. . Munn…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: The following transactions involving intangible assets of Oriole Corporation occurred on or near…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: Munn Inc. has transactions and other information relating to intangible assets as follows. 1. Munn…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On January 1, 2021, Annie Company purchased a mineral mine for P26,400,000 with removable ore…
A: Depletion is the allocation of cost of natural resources that, needs to be allocated over the life…
Q: On January 1, 2020 (the first day of its fiscal year) Pina Ltd. acquired a patent which gave the…
A: All assets are recognized at recoverable or carrying amount whichever less. If the recoverable…
Q: 1. On January 1, 2020, Blue signed an agreement to operate as a franchisee of Hsian Copy…
A: An intangible asset is an asset which do not exists in physical form but an organisation derives…
Q: Cheyenne Corp., organized in 2020, has the following transactions related to intangible assets.…
A: INTANGIBLE ASSETS : these are the assets which have substantial book value but cann't be seen or…
Q: Janes Company provided the following information on intangible assets: A patent was purchased from…
A: Intangible assets are the assets which are not visible in nature but contains value which generates…
Q: The following information relates to the intangible assets of Lettuce Express: On January 1, 2021,…
A: Intangible assets are those assets which can not be seen or touched, but these can only be felt or…
Q: January 1, 2020, Caleb Co acquired the following intangible assets: A trademark for…
A: An impairment loss is the carrying amount of an asset that is in excess of its recoverable amount.…
Q: Bluestone Company had three intangible assets at the end of the current year: A patent purchased…
A: Intangible Assets According to IAS 38 which specifies the standards for identifying and valuing…
Q: Barb Company has provided information on intangible assets as follows:1. A patent was purchased from…
A: The question is related to Measurement and Valuation of Intangible Assets to be shown in the Asset…
Q: GGG Company ventured into construction of a condominium in Baguio which is rated as the largest…
A: Fair value is the actual value of asset or liability on a particular date in the market which are…
Q: On December 31, 2020, Sardines Company has an item of machinery with a cost of $4,500,000 and an…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: The following transactions involving intangible assets of Oriole Corporation occurred on or near…
A: working notes 1. $180800/4 = $45200 2. $249,900/10 = $24900
Q: Llungby AB spent 1,000,000 krone in 2020 on the development of a new product. The company determined…
A: Journal entry is a process of recording and classifying business transactions into books of account…
Q: The following information relates to the intangible assets of Lettuce Express: a. On January 1,…
A:
Q: Hardflex Inc. bought a building for production of XYZ product on June 30, 2017 costing P15,000,000…
A: First, the carrying value of the asset as on 31st December 2018 needs to be determined. Book value…
Q: On December 31, 2020, Zari Company acquired the following intangible assets: • A trademark for…
A: Impairment loss = Carrying amount of the asset - Recoverable amount Calculation of Recoverable…
Q: VINCENZO Inc. was formed towards the end of 2020. At the time of formation, the company spent…
A: An intangible asset is an asset that have without physical substance. Examples are patents,…
Q: The intangible assets section of Ayayai Company at December 31, 2022, is presented here. Patents…
A: Date Account Titles Debit Credit Jan-02 Patent $ 35,100 Cash $…
Q: On January 1, 2020, Ella Company acquired the following intangible assets: • A trademark for…
A: Intangible Asset are those assets, which cannot be touch or we can say that it has a lack if…
Q: The following information concerns the intangible assets of Epstein Corporation:a. On June 30, 2021,…
A: a. Goodwill = Acquisition cost - Fair value of net identifiable assets = $2,000,000 - $1,700,000 =…
Q: The following information relates to the intangible assets of Lettuce Express:a. On January 1, 2021,…
A:
Q: Information concerning Sandro Corporation's intangible assets is as follows. 1. On January 1, 2020,…
A: a. Prepare a schedule showing the intangible assets section of S Corporation's balance sheet at…
Q: On July 15, 2018, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…
A: Gain (Loss) on sale of patent = Sale value - Book value = $750,000 - $120,000 = $630,000 Gain…
Q: During 2021, Bondoc Corporation acquired a mineral mine for P900,000 of which P150,000 was ascribed…
A: Depletion of mine will be on the basis of amount of mineral extracted during the period. Accumulated…
Q: What is the carrying value of trademark as of December 31, 2022?
A: Trademarks are such type of assets to the company through which company generates the revenue as it…
The following transactions involving intangible assets of Blossom Corporation occurred on or near December 31, 2020.
| 1. | Minton paid Grand Company $360,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Blossom is in business. | ||
| 2. | Blossom spent $540,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. | ||
| 3. | In January, 2021, Blossom's application for a patent (#2 above) was granted. Legal and registration costs incurred were $189,000. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years. | ||
| 4. | Blossom incurred $144,000 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2024. | ||
| 5. | Blossom incurred $432,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $226,800, is deemed worthless. | ||
| 6. |
Blossom paid Sneed Laboratories $93,600 for research and development work performed by Sneed under contract for Blossom. The benefits are expected to last six years.
|
1). Prepare journal entries for on the date of transaction.
2). Prepare
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- Wildhorse Company has provided information on intangible assets as follows.A patent was purchased from Windsor Company for $1,700,000 on January 1, 2019. Wildhorse estimated the remaining useful life of the patent to be 10 years. The patent was carried in Windsor’s accounting records at a net book value of $1,700,000 when Windsor sold it to Wildhorse.During 2020, a franchise was purchased from Novak Company for $460,000. In addition, 5% of revenue from the franchise must be paid to Novak. Revenue from the franchise for 2020 was $2,530,000. Wildhorse estimates the useful life of the franchise to be 10 years and takes a full year’s amortization in the year of purchase.Wildhorse incurred research and development costs in 2020 as follows. Materials and equipment $153,000 Personnel 204,000 Indirect costs 108,000 $465,000 Wildhorse estimates that these costs will be recouped by December 31, 2023. The materials and equipment purchased have no alternative…Barb Company has provided information on intangible assets as follows: A patent was purchased from Lou Company for $1,500,000 on January 1, 2018. Barb estimated the remaining useful life of the patent to be 10 years. The patent was carried in Lou's accounting records at a net book value of $1,250,000 when Lou sold it to Barb. During 2019, a franchise was purchased from Rink Company for $500,000. In addition, 5% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,000,000. Barb estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Barb incurred R&D costs in 2019 as follows: Materials and equipment $120,000 Personnel 140,000 Indirect costs 60,000 $320,000 Barb estimates that these costs will be recouped by December 31, 2020. On January 1, 2019, Barb estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018, is only 5 years…Binson Company has provided information on intangible assets as follows: A patent was purchased from Lou Company for $1,515,000 on January 1, 2018. Binson estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of $1,285,000 when Lou sold it to Binson. During 2019, a franchise was purchased from Rink Company for $440,000. In addition, 5% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $1,500,000. Binson estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Binson incurred R&D costs in 2019 as follows: Materials and equipment $104,000 Personnel 155,000 Indirect costs 73,000 $332,000 Binson estimates that these costs will be recouped by December 31, 2020. On January 1, 2019, Binson estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018,…
- Barb Company has provided information on intangible assets as follows:1. A patent was purchased from Lou Company for $1,500,000 on January 1, 2018. Barb estimated the remaining useful life of the patent to be 10 years. The patent was carried in Lou’s accounting records at a net book value of $1,250,000 when Lou sold it to Barb.2. During 2019, a franchise was purchased from Rink Company for $500,000. In addition, 5% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,000,000. Barb estimates the useful life of the franchise to be 10 years and takes a full year’samortization in the year of purchase.3. Barb incurred R&D costs in 2019 as follows.Janes Company provided the following information on intangible assets: A patent was purchased from the Lou Company for $1,400,000 on January 1, 2022. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $490,000 when Lou sold it to Janes. During 2024, a franchise was purchased from the Rink Company for $640,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase. Janes incurred research and development costs in 2024 as follows: Materials and supplies $ 154,000 Personnel 194,000 Indirect costs 74,000 Total $ 422,000 Effective January 1, 2024, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. Required: Prepare the entries necessary for years 2022 through 2024 to reflect the above information. Prepare a schedule showing the…Bluestone Company had three intangible assets at the end of the current year: A patent purchased this year from Miller Company on January 1 for a cash cost of $1,600. When purchased, the patent had an estimated life of 8 years. A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $240,000 because it has an indefinite life. Computer licensing rights were purchased this year on January 1 for $42,000. The rights are expected to have a six-year useful life to the company. Required: Compute the acquisition cost of each intangible asset. Compute the amortization of each intangible for the current year ended December 31. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year.
- Janes Company provided the following information on intangible assets: a. A patent was purchased from the Lou Company for $700,000 on January 1, 2022. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $350,000 when Lou sold it to Janes. b. During 2024, a franchise was purchased from the Rink Company for $500,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase. c. Janes incurred research and development costs in 2024 as follows: Materials and supplies Personnel Indirect costs Total $ 140,000 180,000 60,000 $ 380,000 d. Effective January 1, 2024, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. Required: 1. Prepare the entries necessary for years 2022 through 2024 to reflect the above information. 2. Prepare a schedule showing the…Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Company on January 1 for a cash cost of $4,000. When purchased, the patent had an estimated life of 10 years. b. A trademark was registered with the federal government for $11,000. Management estimated that the trademark could be worth as much as $260,000 because it has an indefinite life. c. Computer licensing rights were purchased this year on January 1 for $36,000. The rights are expected to have a four-year useful life to the company. Required: 1. Compute the acquisition cost of each intangible asset. 2. Compute the amortization of each intangible for the current year ended December 31. 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year.Janes Company provided the following information on intangible assets: A patent was purchased from the Lou Company for $950,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $400,000 when Lou sold it to Janes. During 2021, a franchise was purchased from the Rink company for $550,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase. Janes incurred research and development costs in 2021 as follows: Materials and supplies $145,000 Personnel 185,000 Indirect costs 65,000 Total $395,000 Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years.…
- Barb Company has provided information on intangible assets as follows:1. A patent was purchased from Lou Company for $1,500,000 on January1, 2018. Barb estimated the remaining useful life of the patent to be 10years. The patent was carried in Lou's accounting records at a net bookvalue of $1,250,000 when Lou sold it to Barb. 2. During 2019, a franchise was purchased from Rink Company for$500,000. In addition, 5% of revenue from the franchise must be paid toRink. Revenue from the franchise for 2019 was $2,000,000. Barbestimates the useful life of the franchise to be 10 years and takes a fullyear's amortization in the year of purchase. 3. Barb incurred R&D costs in 2019 as follows. Materials and equipmentPersonnelIndirect costs $120,000140,00060,000 $320,000 Barb estimates that these costs will be recouped by December 31, 2020. 4. On January 1, 2019, Barb estimates, based on new events, that theremaining life of the patent purchased on January 1, 2018, is only 5 yearsfrom…Janes Company provided the following information on intangible assets: A patent was purchased from the Lou Company for $700,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $350,000 when Lou sold it to Janes. During 2021, a franchise was purchased from the Rink Company for $500,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase. Janes incurred research and development costs in 2021 as follows: Materials and supplies $ 140,000 Personnel 180,000 Indirect costs 60,000 Total $ 380,000 4. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. Required:1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information.2.…Carter Company has provided information on intangible assets as follows. A patent was purchased from Ford Company for $2,000,000 on January 1, 2019. Carter estimated the remaining useful life of the patent to be 10 years. The patent was carried in Ford's accounting records at a net book value of $2,000,000 when Ford sold it to Carter. During 2020, a franchise was purchased from Polo Company for $480,000. In addition, 5% of revenue from the franchise must be paid to Polo. Revenue from the franchise for 2020 was $2,500,000. Carter estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Carter incurred research and development costs in 2020 as follows. Materials and equipment $142,000 Personnel 189,000 Indirect costs 102,000 $433,000 Carter estimates that these costs will be recouped by December 31, 2023. The materials and equipment purchased have no alternative uses. On January 1, 2020, because of…
