Accounting for Plant and Intangible Assets Selected transactions of Continental Publishers, Inc., for 2016 are given below: Jan. 2 Paid $95,000 to purchase copyrights to a series of romantic novels. The copyrights expire in 40 years, although sales of the novels are expected to stop after 10 years. Mar. Discovered a satellite dish antenna has been destroyed by lightning. The loss is covered by insurance and a claim is filed today. The antenna cost $9,280 when installed on July 1, 2015, and was being depreciated over 12 years with a $900 salvage value. Straight-line depreciation was last recorded on 1 December 31, 2015. Continental expects to receive an insurance settlement of $8,200. April 1 Paid $125,000 to remodel space to create an employee exercise area on the lower level in a leased building. The building's remaining useful life is 40 years; the lease on the building expires in 12 years. July 1 Paid $275,000 to acquire a patent on a new publishing process. The patent has a remaining legal life of 15 years. Continental estimates the new process will be utilized for 6 years before it becomes obsolete. Nov. 1 Paid $64,000 to obtain a four-year franchise to sell a new series of computerized do-it-yourself manuals. Required a. Prepare journal entries to record these transactions. b. Prepare the December 31 journal entries to record depreciation and amortization expense for assets acquired during the year. Continental uses straight line depreciation and amortization. Round all answers to the nearest dollar. Credit Debit 95000 General Journal Date Description Jan. 2 Copyrights Cash To record purchase of copyrights. Mar. 1 Depreciation Expense - Leasehold Improvements 95000 To record depreciation on satellite dish antenna. Mar. 1 Receivable from Insurance Company Accumulated Depreciation - Antenna To record insurance claim on antenna destroyed by lightening. April 1 To record cost of remodeling leased space. July 1 To record purchase of patent. Nov. 1 To record acquisition of four-year franchise. Required a. Prepare journal entries to record these transactions. b. Prepare the December 31 journal entries to record depreciation and amortization expense for assets acquired during the year. Continental uses straight line depreciation and amortization. Round all answers to the nearest dollar. Transactions Depreciation & Amortization General Journal Description Debit Credit Date Dec.31 To record copyright amortization. Dec.31 To record depreciation of leasehold improvements. Dec.31 To record patent amortization. Dec.31 To record Franchise amortization. Accounting for Plant and Intangible Assets Selected transactions of Continental Publishers, Inc., for 2016 are given below: Jan. 2 Paid $95,000 to purchase copyrights to a series of romantic novels. The copyrights expire in 40 years, although sales of the novels are expected to stop after 10 years. Mar. Discovered a satellite dish antenna has been destroyed by lightning. The loss is covered by insurance and a claim is filed today. The antenna cost $9,280 when installed on July 1, 2015, and was being depreciated over 12 years with a $900 salvage value. Straight-line depreciation was last recorded on 1 December 31, 2015. Continental expects to receive an insurance settlement of $8,200. April 1 Paid $125,000 to remodel space to create an employee exercise area on the lower level in a leased building. The building's remaining useful life is 40 years; the lease on the building expires in 12 years. July 1 Paid $275,000 to acquire a patent on a new publishing process. The patent has a remaining legal life of 15 years. Continental estimates the new process will be utilized for 6 years before it becomes obsolete. Nov. 1 Paid $64,000 to obtain a four-year franchise to sell a new series of computerized do-it-yourself manuals. Required a. Prepare journal entries to record these transactions. b. Prepare the December 31 journal entries to record depreciation and amortization expense for assets acquired during the year. Continental uses straight line depreciation and amortization. Round all answers to the nearest dollar. Credit Debit 95000 General Journal Date Description Jan. 2 Copyrights Cash To record purchase of copyrights. Mar. 1 Depreciation Expense - Leasehold Improvements 95000 To record depreciation on satellite dish antenna. Mar. 1 Receivable from Insurance Company Accumulated Depreciation - Antenna To record insurance claim on antenna destroyed by lightening. April 1 To record cost of remodeling leased space. July 1 To record purchase of patent. Nov. 1 To record acquisition of four-year franchise. Required a. Prepare journal entries to record these transactions. b. Prepare the December 31 journal entries to record depreciation and amortization expense for assets acquired during the year. Continental uses straight line depreciation and amortization. Round all answers to the nearest dollar. Transactions Depreciation & Amortization General Journal Description Debit Credit Date Dec.31 To record copyright amortization. Dec.31 To record depreciation of leasehold improvements. Dec.31 To record patent amortization. Dec.31 To record Franchise amortization