Prepare all journal entries necessary to correct any errors

Assignment Help Accounting Basics
Reference no: EM133151592

Question - Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Blue Spruce Company in 2022.

1. Blue Spruce developed a new manufacturing process, incurring research and development costs of $132,000. The company also purchased a patent for $58,000. In early January, Blue Spruce capitalized $190,000 as the cost of the patents. Patent amortization expense of $19,000 was recorded based on a 10-year useful life.

2. On July 1, 2022, Blue Spruce purchased a small company and as a result recorded goodwill of $100,000. Blue Spruce recorded a half-year's amortization in 2022, based on a 50-year life ($1,000 amortization).

Required - Prepare all journal entries necessary to correct any errors made during 2022. Assume the books have not yet been closed for 2022.

Reference no: EM133151592

Questions Cloud

Why use social media content : Why use social media content? How is it effective?
Prepare a journal entry to record revenue for transaction : Prepare a journal entry to record revenue for this transaction, assuming that Antonio's uses the residual method to estimate the stand-alone selling price
How has is helped ndpl : How has IS helped NDPL? What has been the contribution of IS to the growth of NDPL?
Entry-level position in the hospitality industry : Some people consider a entry-level position in the hospitality industry to be dead end jobs. What is the difference between a dead-end job and a entry level pos
Prepare all journal entries necessary to correct any errors : Prepare all journal entries necessary to correct any errors made during 2022. Assume the books have not yet been closed for 2022
Source of sustained competitive advantage : Specify the circumstances under which a firm's diversification strategy will be a source of sustained competitive advantage.
How does the globalization of business affect : How does the globalization of business affect how the ethical issues surrounding the use of child labor should be analyzed?
Determine the balance in the work in process inventory : Actual overhead costs for the year totaled $92,000. On December 31, determine the balance in the Work in Process inventory account
Calculate the minimum amount this couple needs : Their monthly expenses total $1,550. Calculate the minimum amount this couple needs to establish an emergency fund

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd