Blossom Company, organized in 2019, has set up a single account for all intangible assets. The following
Question:
Blossom Company, 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.
1/2/20 Purchased patent (7-year life) $316,400
4/1/20 Purchase goodwill (indefinite life) 362,000
7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 442,000
8/1/20 Payment of copyright (5-year life) 170,400
9/1/20 Research and development costs 232,000
$1,522,800
(a1)
Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation Debit Credit
Patents 316,400
Goodwill 362,000
Franchises 442,000
Copyrights 170,400
Research and Development Expense 232,000
Intangible Assets 1,522,800
(a2)
Make the entry as of December 31, 2020, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation Debit Credit
Amortization Expense 81,500
Patents 45,200
Franchises 22,100
Copyrights 14,200
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(a3)
Reflect all balances accurately as of December 31, 2020.
Use straight-line amortization
select an intangible asset
$enter a dollar amount
select an intangible asset
$enter a dollar amount
select an intangible asset
$enter a dollar amount
select an intangible asset
$enter a dollar amount