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Accounting for Intangible Assets and Leasehold Improvements Jeffrey Company owns several retail outlets. During the year, it expanded operations and entered into the following transactions:
Accounting for Intangible Assets and Leasehold Improvements Jeffrey Company owns several retail outlets. During the year, it expanded operations and entered into the following transactions: Jan. Signed an eightyear lease for additional retail space for an annual rent of $ Paid the first year's rent on this date. Hint: Debit the first year's rent to Prepaid Rent. Jan. Paid $ to a contractor for installation of a new oak floor in the leased facility. The oak floor's life is an estimated years with no salvage value. Mar. Paid $ to obtain an exclusive area franchise for five years to distribute a new line of gourmet chocolates. July Paid $ to LogoLab, Inc., for designing a trademark for a new line of gourmet chocolates that Jeffrey will distribute nationally. Jeffrey will use the trademark for as long as the firm remains in business. Jeffrey expects to be in business for at least another years. July Paid $ for advertisement in a national magazine June issue introducing the new line of gourmet chocolates at the trademark. Required a Prepare journal entries to record these transactions. b Prepare the necessary adjusting entries on December for these transactions. Jeffrey makes adjusting entries once a year. Jeffrey uses straightline depreciation and amortization. Round all answers to the nearest dollar. Transactions Depreciation & Amortization General Journal Date Description Debit Credit Jan. Answer Answer Answer Answer Answer Answer To record payment of first year's rent on year lease. Jan. Answer Answer Answer Answer Answer Answer To record payment for oak floor installation in leased facility Mar. Answer Answer Answer Answer Answer Answer To record acquisition of year franchise. July Answer Answer Answer Answer Answer Answer To record payment for design of trademark. July Answer Answer Answer Answer Answer Answer To record payment for advertising.
Accounting for Intangible Assets and Leasehold Improvements
Jeffrey Company owns several retail outlets. During the year, it expanded operations and entered into the following transactions:
Jan. Signed an eightyear lease for additional retail space for an annual rent of $ Paid the first year's rent on this date. Hint: Debit the first year's rent to Prepaid Rent.
Jan. Paid $ to a contractor for installation of a new oak floor in the leased facility. The oak floor's life is an estimated years with no salvage value.
Mar. Paid $ to obtain an exclusive area franchise for five years to distribute a new line of gourmet chocolates.
July Paid $ to LogoLab, Inc., for designing a trademark for a new line of gourmet chocolates that Jeffrey will distribute nationally. Jeffrey will use the trademark for as long as the firm remains in business. Jeffrey expects to be in business for at least another years.
July Paid $ for advertisement in a national magazine June issue introducing the new line of gourmet chocolates at the trademark.
Required
a Prepare journal entries to record these transactions.
b Prepare the necessary adjusting entries on December for these transactions. Jeffrey makes adjusting entries once a year. Jeffrey uses straightline depreciation and amortization.
Round all answers to the nearest dollar.
Transactions
Depreciation & Amortization
General Journal
Date Description Debit Credit
Jan. Answer
Answer
Answer
Answer
Answer
Answer
To record payment of first year's rent on year lease.
Jan. Answer
Answer
Answer
Answer
Answer
Answer
To record payment for oak floor installation in leased facility
Mar. Answer
Answer
Answer
Answer
Answer
Answer
To record acquisition of year franchise.
July Answer
Answer
Answer
Answer
Answer
Answer
To record payment for design of trademark.
July Answer
Answer
Answer
Answer
Answer
Answer
To record payment for advertising.
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Operations And Supply Chain Management
Authors: F. Robert Jacobs, Richard Chase
14th Edition
287
