Wildhorse Corporation has the following selected transactions during the year ended December 31, 2024: Jan 1 Purchased a copyright for $117.510 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Mar. 1 Sept. 1 Dec. 31 (a) Acquired a franchise with a contract period of nine years for $551.610: the expiration date is March 1, 2033. Paid cash of $39,240 and borrowed the remainder from the bank. Date Purchased a trademark with an indefinite life for $78,720 cash. As the purchase was being finalized, spent $36,090 cash in legal fees to successfully defend the trademark in court. Purchased an advertising agency for $622,000 cash. The agency's only assets reported on its statement of financial position immediately before the purchase were accounts receivable of $53,500, furniture of $161,000, and leasehold improvements of $302.000. Wildhorse hired an independent appraiser who estimated that the fair value of these assets was accounts receivable $53,500, furniture $171,000, and leasehold improvements $327,000. Wildhorse is not assuming any liabilities pertaining to the agency. Prepare the entries to record the above transactions. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.) Account Titles and Explanation (To record purchase of trademark) (To record costs incurred to defend trademark) Debit Credit
Wildhorse Corporation has the following selected transactions during the year ended December 31, 2024: Jan 1 Purchased a copyright for $117.510 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Mar. 1 Sept. 1 Dec. 31 (a) Acquired a franchise with a contract period of nine years for $551.610: the expiration date is March 1, 2033. Paid cash of $39,240 and borrowed the remainder from the bank. Date Purchased a trademark with an indefinite life for $78,720 cash. As the purchase was being finalized, spent $36,090 cash in legal fees to successfully defend the trademark in court. Purchased an advertising agency for $622,000 cash. The agency's only assets reported on its statement of financial position immediately before the purchase were accounts receivable of $53,500, furniture of $161,000, and leasehold improvements of $302.000. Wildhorse hired an independent appraiser who estimated that the fair value of these assets was accounts receivable $53,500, furniture $171,000, and leasehold improvements $327,000. Wildhorse is not assuming any liabilities pertaining to the agency. Prepare the entries to record the above transactions. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.) Account Titles and Explanation (To record purchase of trademark) (To record costs incurred to defend trademark) Debit Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 8P
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answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:Wildhorse Corporation has the following selected transactions during the year ended December 31, 2024:
Jan 1 Purchased a copyright for $117.510 cash. The copyright has a useful life of six years and a remaining legal life of
30 years
Mar. 1
Sept. 1
Dec. 31
(a)
Acquired a franchise with a contract period of nine years for $551.610, the expiration date is March 1, 2033.
Paid cash of $39,240 and borrowed the remainder from the bank.
Date
Purchased a trademark with an indefinite life for $78,720 cash. As the purchase was being finalized, spent
$36,090 cash in legal fees to successfully defend the trademark in court.
Purchased an advertising agency for $622,000 cash. The agency's only assets reported on its statement of
financial position immediately before the purchase were accounts receivable of $53,500, furniture of $161,000,
and leasehold improvements of $302.000. Wildhorse hired an independent appraiser who estimated that the fair
value of these assets was accounts receivable $53,500, furniture $171,000, and leasehold improvements
$327,000. Wildhorse is not assuming any liabilities pertaining to the agency.
Prepare the entries to record the above transactions. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.)
Account Titles and Explanation
(To record purchase of trademark)
(To record costs incurred to defend trademark)
Debit
OOOO
Credit
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