Solution-Prepare necessary journal entries to clear

Prepare necessary journal entries to clear intangible assets

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Reference no: EM133094979

Question - The Hort Corporation commenced operations in early 2021. A number of expenditures were made during 2021 that were debited to one account called "Intangible Assets". A summary of this account is listed below:

Date	Transaction	Amount
03-Feb	Provincial incorporation fees and legal costs related to organizing the corporation	$7,000
01-Mar	Fire insurance premium for 3 years	$6,000
15-Mar	Copyright purchase	$20,000
30-Apr	Research costs	$40,000
06-Jun	Legal fees for filing a patent on a new product resulting from a research project	$3,000
30-Sep	Legal fee for successful defence of patent developed above	$12,000
30-Oct	Adverting costs	$16,000
30-Nov	Purchase of all the net assets of Stiltz Corp.	$500,000
	Total	$604,000

Stiltz Corporation's fair value of its net assets was as follows:

Receivables $100,000

Equipment $350,000

Patent $150,000

Note payable -$220,000

Market value of net assets $380,000

Required - Prepare the necessary journal entries to clear the intangible assets account and set up accounts for separate intangibles, other types of assets, and expenses as indicated by the transactions.

Reference no: EM133094979

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Prepare necessary journal entries to clear intangible assets

Reference no: EM133094979

Reference no: EM133094979

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