Prepare all journal entries necessary to correct any errors

Reference no: EM131830456

Question: Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Inland Corporation.

1. Inland developed a new manufacturing process, incurring research and development costs of $160,000. The company also purchased a patent for $40,000. In early January, Inland capitalized $200,000 as the cost of the patents. Patent amortization expense of $10,000 was recorded based on a 20-year useful life.

2. On July 1, 2017, Inland purchased a small company and as a result recorded goodwill of $80,000. Inland recorded a half-year's amortization in 2017, based on a 20-year life ($2,000 amortization). The goodwill has an indefinite life.

Instructions: Prepare all journal entries necessary to correct any errors made during 2017. Assume the books have not yet been closed for 2017.

Reference no: EM131830456

Questions Cloud

How would you modify the hello printer program : How would you modify the Hello Printer program to print the word "Hello" vertically? What does the following set of statements print?

Minimize your expected cost : What is the optimal number of hours 10 wait before you return for inspection in order to minimize your expected cost?

Corporate governance and ethics in financial decision-making : Explain the role of corporate governance and ethics in financial decision-making.

Determine the variance of the number of letters : Determine the variance of the number of letters that are placed in the correct envelopes.

Prepare all journal entries necessary to correct any errors : Prepare all journal entries necessary to correct any errors made during 2017. Assume the books have not yet been closed for 2017.

How do you modify hello printer program to greet you instead : What do you do to protect yourself from data loss when you work on programming projects? How do you modify the Hello Printer program to greet you instead?

Determine the correlation of x and y : Suppose that X and Yare random variables such that £(Y I X) = 7 - (I/4)X and E( X I Y) = 10 - Y. Determine the correlation of X and Y.

How the publics attitude toward food is shifting : Provide two specific examples, from the book, that demonstrate how the public's attitude toward food and farming is shifting?

Mirr using the discounting approach : Calculate the MIRR of the project using all three methods. MIRR using the discounting approach.

User Account

All Pages