Reichenbach Co., organized in 2011, has set up a single account for all intangible assets. The following
Question:
Reichenbach Co., organized in 2011, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2012 and 2013.
InstructionsPrepare 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, 2013, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore income taxeffects.)
Transcribed Image Text:
Intangible Assets 8-year franchise; expiration date 6/30/19 Advance payment on laboratory space (2-year lease) Net loss for 2011 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2011) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs 7/1/12 10/1/12 12/31/12 $ 48,000 24,000 16,000 1/2/13 3/1/13 4/1/13 84,000 278,400 12,650 160,000 6/1/13 9/1/13
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (15 reviews)
Franchises 48000 Prepaid Rent 24000 Retained Earnings Net loss 16000 Patents 84000 12650 96650 ...View the full answer
Answered By
Tanneru Goutam
I believe tutors are those who interact with students on a one-to-one basis which helps them in understanding the concepts quickly which wouldn't have been possible in a larger class. My experience in tutoring has taught me that it would be my key responsibility to help the student understand his/her weak areas and provide necessary feedback for improvement.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Reichenbach Co., organized in 2013, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2014 and 2015. Instructions...
-
Reichenbach Co., organized in 2018, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2018 and 2019. Instructions...
-
Reichenbach Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. Instructions...
-
A three-phase line has an impedance of 1 + j3 per phase. The line feeds a balanced delta-connected load, which absorbs a total complex power of 12 + j5 k VA. If the line voltage at the load end has...
-
What common tax-planning strategies are available to most individuals and households?
-
On January 1, 2015, Pine Company owns 40 percent (40,000 shares) of Seacrest, Inc., which it purchased several years ago for $182,000. Since the date of acquisition, the equity method has been...
-
Describe the importance of capital investments and the capital budgeting process
-
Bank of Americas Consumer Spending Survey collected data on annual credit card charges in seven different categories of expenditures: transportation, groceries, dining out, household expenses, home...
-
QS 1 2 - 6 ( Algo ) Indirect: Computing cash from operations LO P 2 MOSS COMPANY Income Statement For Year Ended December 3 1 , 2 0 2 1 Sales $ 5 8 4 , 0 0 0 Cost of goods sold 3 7 1 , 6 0 0 Gross...
-
Healthwise Medical Supplies Company is located at 2400 Second Street, City, ST 12345. The company is a general partnership that uses the calendar year and accrual basis for both book and tax...
-
During 2012, Botosan Enterprises Inc. spent $5,000,000 developing its new Dover software package. Of this amount, $2,600,000 was spent before technological feasibility was established for the...
-
During 2010, Robin Wright Tool Company purchased a building site or its proposed research and development laboratory at a cost of $60,000. Construction of the building was started in 2010. The...
-
Study the following Excel multiple regression output. How many predictors are in this model? How many observations? What is the equation of the regression line? Discuss the strength of the model in...
-
Crestwood Ltd., a computer hardware company with sales of $28 million and a net profit margin of 6.5% is considering an expansion. Management estimates the expansion would result in sales growth of...
-
If you purchase $1000 of goods and the terms are 2/10 Net 30. What is the discount amount if you pay before the end of the discount period?
-
A cooling crystallizer has a feed of 1,000 lb/h of 32.5 wt% MgSO4 in water at 120F. This solution is cooled to 70F to form crystals of the heptahydrate. The feed of the specific heat is approximately...
-
3. V Corporation manufactures rattan furniture sets for export and uses the job order cost system in accounting for its cost. You obtained from the corporation's books and records the following...
-
Complete the performance report. Review the existing data in the performance report. Calculate the variances. Calculate the variance percentages. Decide whether the variances are favourable or...
-
What major demographic changes are likely to affect organisations in the near future? How can HR planning help organisations to successfully deal with these changes?
-
Suppose you are comparing just two means. Among the possible statistics you could use is the difference in means, the MAD, or the max min (the difference between the largest mean and the smallest...
-
In which financial year, will revenue be recognized in each of the following cases: 1. Advance received from a customer on 31st December 2016. The goods are manufactured and invoiced on 1st April...
-
Depreciation ComputationsSYD, DDBPartial Periods Cosby Company purchased a new plant asset on April 1, 2010, at a cost of $774,000. It was estimated to have a service life of 20 years and a salvage...
-
Depreciation ComputationsFive Methods Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2010. It is estimated that it will have a useful life of 10 years, salvage value of $15,000,...
-
Depreciation ComputationsFour Methods Maserati Corporation purchased a new machine for its assembly process on August 1, 2010. The cost of this machine was $150,000. The company estimated that the...
-
BMX Company has one employee. FICA Social Security taxes are 6 . 2 % of the first $ 1 3 7 , 7 0 0 paid to its employee, and FICA Medicare taxes are 1 . 4 5 % of gross pay. For BMX , its FUTA taxes...
-
you can answer the question on a paper and photographing it if u cannot explain it here. Part II: ( 5 points ) Problem: - Entries for Zero - Interest - Bearing Note ( CLO # 1 & 2 ) On December 3 1 ,...
-
Sunland, Inc. produces men's shirts. The following budgeted and actual amounts are for 2 0 2 2 : \ table [ [ Cost , Budget at 2 , 6 9 0 units,Actual Amounts at 2 , 9 9 0 units ] , [ Direct...
Study smarter with the SolutionInn App