The patent was acquired in january 2012 and has a useful

Assignment Help Accounting Basics

Reference no: EM13572844

The intangible assets section of Centaur Company at December 31, 2012, is presented below.

Patents ($84,400 cost less $8,440 amortization)		$75,960
Franchises ($44,500 cost less $17,800 amortization)		26,700
Total		$102,660

The patent was acquired in January 2012 and has a useful life of 10 years. The franchise was acquired in January 2009 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2013.

Jan. 2		Paid $49,680 legal costs to successfully defend the patent against infringement by another company.
Jan.-June		Developed a new product, incurring $140,170 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life.
Sept. 1		Paid $51,990 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials will air in September and October.
Oct. 1		Acquired a franchise for $192,000. The franchise has a useful life of 50 years.

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

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

Reference no: EM13572844

Questions Cloud

Sanderson sells a single product for 55 that has a : sanderson sells a single product for 55 that has a variable cost of 40. fixed costs amount to 10 per unit when

Northern pacific heating and cooling inc has a 6-month : northern pacific heating and cooling inc. has a 6-month backlog of orders for its patented solar heating system. to

A new machine will generate the following profits at 6 : a new machine will generate the following profitsyear 1 10000year 2 9000year 3 8000year 47000at 6 interest what is the

Why is the accuracy of cost allocation so important cite : why is the accuracy of cost allocation so important? cite real-life examples of either successes or failures in cost

The patent was acquired in january 2012 and has a useful : the intangible assets section of centaur company at december 31 2012 is presented below.patents 84400 cost less 8440

Angela leichners luxurious home in georgetown a : angela leichners luxurious home in georgetown a neighborhood in washington dc was recently gutted in a fire. her living

Starkey companys sales current assets and current : starkey companys sales current assets and current liabilities all in thousands of dollars have been reported as follows

Last year charles and kathy price bought a home with a : last year charles and kathy price bought a home with a dwelling replacement value of 200000 and insured it via an ho-3

Write at least a 6 page paper along with a brief : write at least a 6 page paper along with a brief presentation about a creative person. your paper should describe how

User Account

All Pages