Reference no: EM131788061

LIST OF ACCOUNTS USED FOR PROBLEM :

Accounts Payable
Accounts Receivable
Accumulated Depletion
Accumulated Depreciation-Buildings
Accumulated Depreciation-Equipment
Advertising Expense
Allowance for Doubtful Accounts
Amortization Expense
Bad Debts Expense
Buildings
Cash
Coal Mine
Copyrights
Cost of Goods Sold
Depletion Expense
Depreciation Expense
Equipment
Franchises
Gain on Disposal of Plant Assets
Goodwill
Insurance Expense
Interest Expense
Interest Payable
Interest Receivable
Interest Revenue
Inventory
Land
Land Improvements
Loss on Disposal of Plant Assets
Maintenance and Repairs Expense
No Entry
Notes Payable
Notes Receivable
Ore Mine
Other Operating Expenses
Owner's Capital
Owner's Drawings
Patents
Prepaid Insurance
Rent Revenue
Research and Development Expense
Salaries and Wages Expense
Salaries and Wages Payable
Sales Revenue
Unearned Rent Revenue

Exercise 1

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The following are selected 2015 transactions of Pedigo Corporation.

Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite.

May. 1 Purchased for $75,000 a patent with an estimated useful life of 5 years and a legal life of 20 years.

Prepare necessary adjusting entries at December 31 to record amortization required by the events above.