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1. The $357,000 cost of a new stock management software package.
Anderson Gadd owns and operates a number of restaurants, half of which are operated under franchise from a global company Allied Restaurant Company ("ARC"). Anderson Gadd has incurred the following expenses in the year ended 31 July 2020 and wishes to know which can be recognised as intangible assets in the statement of financial position:
2. Franchise fees of $250,000 paid to ARC for the use of the trading name 'Cowabunga' for a new outlet.
3. Training costs amounting to $130,000 for staff at the new Cowabunga outlet.
4. Advertising costs of $75,000 incurred prior to the opening of the new Cowabunga outlet.
Required:
Problem a: Prepare the journal entries for Anderson Gadd regarding the above transactions for the year ended 31 July 2020.
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