Doon Bonnie. has just hired you into their accounting department. The person you replaced(Tweedle Dee) was transferred out after it was discovered that he had no idea what he was doing. During the year, if Tweedle Dee was not too sure of the proper accounting for a transaction, he simply put it in his fix later account (he calls the account Fix-Later). Make the proper journal entries to correct the companys financial records (as well as the proper fiscal year-end adjusting entries) for the fiscal year end 12/31/2000.

4/30/2000

The company purchases a trademark it is

supposed to be part of a new product line that

the company expects will last 10 years. Debit 500,000

6/30/2000

Recorded the cash outlay for wages for the

entire company. 40% of the wages are for

engineers working on projects, 30% is for

administrative staff, and 30% is for the

executives. Debit 1,200,000

6/30/2000

Due to rising market value, the company

recognizes a large increase in their retained

earnings account. Debit 5,000,000

8/31/2000

The company purchases a new laser for use in

their current research projects. The laser will

be used exclusively on this project for one

year, but afterwards will be used to engrave

nameplates for 3 more years thereafter. Debit 250,000

9/30/2000

The companys attorney gave notice that they

will likely win their lawsuit against their main

competitor. The range of the gain from the

lawsuit is between $5,000 $50,000 Debit 50,000