Reference no: EM131665579
Problem 1: Patent
Pizza the Action purchases a patent from On a Roll on January 1, 2018 for $54,000. The patent has a remaining legal life of 16 years. Pizza the Action feels the patent will be useful until the end of 2027. Prepare Pizza the Action's journal entries to record the purchase and 2018 amortization.
In January 2020, Pizza the Action spends $24,000 successfully defending a patent suit. Pizza the Action still feels the patent will be useful until the end of 2027. Prepare the entries to record the $24,000 expenditure and the 2020 amortization.
Assume instead that in January 2020, Pizza the Action spends $24,000 to defend its patent but they are UNSUCCESSFUL and the patent is deemed useless. Prepare the necessary entries. Be sure to include the dates these entries will be written.
Problem 2: Franchise
The hair salon Mane Event obtained a franchise from Curl Up and Dye for a cash payment of $120,000 on April 1, 2019. The franchise grants Mane Event the right to sell certain products and services for a period of 8 years. Prepare Mane Event's April 1 journal entry and December 31 adjusting entry.
Problem 3: Natural Resources
Migs, Inc. purchases a diamond mine for $400,000, and incurs $300,000 in capitalizable costs related to the property. Migs estimates that 1,000,000 diamonds will be extracted from the mine over its useful life and the property will have no residual value. In 2017, Migs extracts 195,000 diamonds and in 2018, Migs extracts 283,000 diamonds.
Calculate the depletion per diamond using the units of production method.
Calculate the depletion of the mine for 2017.
Record the depletion for 2017.
Calculate the depletion of the mine for 2018.
Record the depletion for 2018.
Assume Migs, Inc. sells 310,000 diamonds for $50 each, all received in cash. Record the entry.
Managers of a perfectly competitive firm
: Why does it make no sense for the managers of a perfectly competitive firm to spend money on advertising?
|
Prepare all journal entries for eastjet airlines
: Prepare all journal entries for EastJet Airlines for the year 2016 including any adjusting entries at the October 31, 2016 year end
|
Solving problem of the disposal of assets
: A company has an inventory of 1,300 assorted parts for a line of missiles that has been discontinued. The inventory cost is $71,000.
|
Endorse a moderate ethical-egoism
: Some ethicists argue that we should endorse a moderate ethical-egoism. They have given some surprisingly plausible arguments for their claim.
|
Calculate the depletion per diamond
: Migs, Inc. purchases a diamond mine for $400,000, and incurs $300,000 in capitalizable costs related to the property. Calculate the depletion per diamond
|
Disadvantages of the vertical integration
: What are the advantages and disadvantages of the vertical integration of the hospital and physicians practice? What economic factors should be consiered?
|
Staff members to offer assistance in solving the problem
: The monthly report on medication errors was presented to all units within ECHO Hospital. Although the rate has decreased
|
Should rt manufacturing replace the old machine
: Robinson Computers makes 5,700 units of a circuit board, CB76, at a cost of $230 each. Variable cost per unit is $180 and fixed cost per unit is $50.
|
Growing popularity of having surgery overseas
: If more European governments and hospitals begin to offer and publicize their services to American medical tourists.
|