1.Maine Coon SA was organized in 2018 and began operations at the beginning of 2019. The company is involved in interior design consulting services. The following costs were incurred prior to the start of operations.

Attorney's fees in connection with organization of the company P17,000

Purchase of drafting and design equipment 10,000

Costs of meetings to discuss organizational activities 7,000

Government filing fees for company start-up 1,000

P35,000

Required:

a. Compute the total amount of organization costs incurred by Maine Coon.

b. Please prepare the journal entry to record organization costs for 2019.

2.Scottish Fold Company has provided information on intangible assets as follows.

A patent was purchased from Bradtke Company for P2,500,000 on January 1, 2018. Harris estimated the remaining useful life of the patent to be 10 years. The patent was carried in Bradtke's accounting records at a net book value of P2,000,000 when Bradtke sold it to Harris.

During 2019, a franchise was purchased from Greene Company for P580,000. In addition, 5% of revenue from the franchise must be paid to Greene. Revenue from the franchise for 2019 was P2,500,000. Harris estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase.

Harris incurred research and development costs in 2019 as follows.

Materials and equipment P142,000

Personnel 189,000

Indirect costs 102,000

P433,000

Harris estimates that these costs will be recouped by December 31, 2022, but due to uncertainty in the market, its process has not achieved economic viability. The materials and equipment purchased have no alternative uses.

On January 1, 2019, because of recent events in the field, Harris estimates that the remaining life of the patent purchased on January 1, 2018, is only 5 years from January 1, 2019.

Required:

a. Kindly make a schedule showing the intangibles section of Harris's statement of financial position at December 31, 2019. Show supporting computations in good form.

b. Also make a schedule showing the income statement effect for the year ended December 31, 2019, as a result of the facts above. Show supporting computations in good form.

3.During 2018, Japanese Bobtail Ltd. spent P170,000 in research costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2018, and had a legal life of 20 years and a useful life of 10 years. Legal costs of P24,000 related to the patent were incurred as of October 1, 2018. (Amounts are in thousands.)

Required:

a. Please make all journal entries required in 2018 and 2019 as a result of the transactions above.

b. On June 1, 2020, Japanese Bobtail spent P12,400 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2020. Kindly make all journal entries required in 2020 and 2021.

c. In 2022, Japanese Bobtail determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2023. Please make all journal entries required in 2022 and 2023

Thank you for your help