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Cullumber Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been

Cullumber 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.

1/2/20Purchased patent (8-year life)

$354,400

4/1/20Purchase goodwill (indefinite life)

353,000

7/1/20Purchased franchise with 10-year life; expiration date 7/1/30

433,000

8/1/20Payment of copyright (5-year life)

159,600

9/1/20Research and development costs

223,000

$1,523,000

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

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

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

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

Reflect all balances accurately as of December 31, 2020.

Use straight-line amortization

select an intangible asset Copyrights Research and development costs Patents Franchises Goodwill

$enter a dollar amount

select an intangible asset Copyrights Goodwill Franchises Research and development costs Patents

$enter a dollar amount

select an intangible asset Patents Research and development costs Franchises Goodwill Copyrights

$enter a dollar amount

select an intangible asset Goodwill Franchises Patents Copyrights Research and development costs

$enter a dollar amount

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1 Clearing the Intangible Assets Account Account Title Debit Credit Patents 354400 Goodwill 353000 F... blur-text-image

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