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 company's 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 company's 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