Prepare the correct journal entries

Assignment Help Cost Accounting

Reference no: EM131525

Johnson company's balance sheet section with intangible assets at 12/31/2012 is presented below.
		cost	less amortization		net
	Patents	$35,000	$3,000		$32,000
	Copyrights	$20,000	$6,000		$14,000
	Total				$46,000

The patent for fire retardent :
	Acquired	1/15/2012		Use ful life	24	years

The copyright for publishing the operating procedures manual :
	Acquired	1/15/2012		Use ful life	16	years

Some Paid cash transactions with potential impact on intangible assets follow :
	Attorneys fees for infringement defense				1/15/2013	$20,000
	R and D for the new retardent sprayer				Jan-June	$100,000
	Product patent received				6/1/2013
				Useful life	(same as legal life)
	Patent total legal and related costs					$6,000
	Harry Onfire Celebrity endorsement cost				Sept-Oct	$50,000

A new copyright for making antidotes to the retardent was purchased from Burnemnot
	Acquired	10/1/2013		Use ful life	20	years
	Cost	$60,000		Legal life	20	years

Franchise and license were obtained for the new products from Bradpittster company
	Acquired	10/1/2013		Use ful life	10	years
	Cost	$85,000

Small division of Angelojolie Company (distribution chain) was purchased
	Acquired	12/1/2013		Price	$400,000
		fair value determined to be			$250,000

Instructions

(a) Prepare the correct journal entries to record the transactions.

(b) Prepare the correct journal entries to record the 2013 amortization expense.

(d) Prepare a note to the financial statements on Johnson Company's intangible assets as of December 31, 2013.

Reference no: EM131525

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