Prepare the necessary entries to clear the intangible

Reference no: EM13481643

Reichenbach Co., organized in 2009, has set up a single account forall intangible assets. The following summary discloses the debitentries that have been recorded during 2009 and 2010.

Intangible Assets:

7/1/09--8 year franchise: expiration date6/30/17 $48,000

10/1/09--Advance payment on laboratory space (2 yearlease) $24,000

12/31/09--Net loss for 2009 including state incorporation fee,$1000, and related legal fees of organizing, $5000 (all feesincurred in 2009) $16,000

1/2/10--Patent purchased (10 year) $84,000

3/1/10--Cost of developing a secret formula (indefinitelife) $75,000

4/1/10--Goodwill purchased (indefinite Life) $278,400

6/1/10--Legal fee for successful defense of patent purchasedabove $12,650

9/1/10--Research and developmentcosts. $160,000

Instructions:

Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2010, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore income tax effects.)

Reference no: EM13481643

Questions Cloud

How can a person tell whether an entry to an expense : how can a person tell whether an entry to an expense account is payment for a legitimate expenditure or a means of

Elaborate how the accounts payable to inventory covenant : friedmans inc is a leading fine jewellery retailer.in nov 04 the firm said that it might default on certain of the

Assets cash and marketable securities 95 164 receivables : here are simplified financial statements of phone corporation from a recent year income statement figures in millions

Explain how the interest expense shown in the income : from the balance sheetcash.............................................................30000 accounts

Prepare the necessary entries to clear the intangible : reichenbach co. organized in 2009 has set up a single account forall intangible assets. the following summary discloses

A company sells computers at a selling price of 1400 each : a company sells computers at a selling price of 1400 each. each computer has a 2 year warranty that covers replacement

From the balance sheet compute the current ratio quick : from the balance sheetcash............................................................. 30000

What is the present value of 200000 to be paid at the end : a. what is the present value of 200000 to be paid at the end of 10 years assuming an 8 interest rate?b. what is the

How would the following errors affect the account balances : accounting errors-transaction errors how would the following errors affect the account balances and the basic

User Account

All Pages