Kopke Company, organized in 2012, has these transactions related to intangible assets in that year Jan 2 Purchased a patent (5 year life) $280,000 Apr 1 Goodwill acquired as a result of purchased business (indefinite life) $360,000 July 1 Acquired a 9 year franchise expiration date July 1, 2021, $5...

a 1212 Patent 280000 Cash 280000 4112 Goodwill 360000 Cash 360000 Part of the entry to ...

Kopke Company, organized in 2012, has these transactions related to intangible assets in that year: Jan. 2

Question:

Kopke Company, organized in 2012, has these transactions related to in that year:
Jan. 2 Purchased a patent (5-year life) $280,000.
Apr. 1 acquired as a result of purchased business (indefinite life) $360,000.
July 1 Acquired a 9-year franchise; expiration date July 1, 2021, $540,000.
Sept. 1 Research and development costs $185,000.
Instructions
(a) Prepare the necessary entries to record these transactions related to intangibles. All costs incurred were for cash.
(b) Make the entries as of December 31, 2012, recording any necessary amortization.
(c) Indicate what the balances should be on December 31, 2012.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...