--------------------
---------------------
Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Novak Corporation 1. Novak developed a new manufacturing process, incurring research and development costs of $147,000. The company also purchased a patent for $51.000. In early January, Novak capitalized $198.000 as the cost of the patents. Patent amortization expense of $9.900 was recorded based on a 20-year useful life. On July 1, 2022, Novak purchased a small company and as a result recorded goodwill of $93,000, Novak recorded a half- year's amortization in 2022, based on a 20-year life ($2,325 amortization). The goodwill has an indefinite life. 2 Prepare all journal entries necessary to correct any errors made during 2022. Assume the books have not yet been closed for 2022. (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 for the amounts.) No. Account Titles and Explanation Debit Credit 1. (To record research and development expense) (To reverse amortization expense) 2. During 2022, Larkspur, Inc. reported net sales of $2.984,500 and net income of $1,370,000. Its balance sheet reported average total assets of $1.270,000 Calculate the asset turnover. (Round answer to 2 decimal places, eg. 1.25.) Asset turnover $ times The intangible assets section of Cullumber Company's balance sheet at December 31, 2022, is presented here. Patents ($60,000 cost less 56,000 amortization) $54.000 Copyrights ($35,000 cost less $24.500 amortization) 10,500 Total $64,500 The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan. 2 Pald $18,000 legal costs to successfully defend the patent against infringement by another company. Jan-July Developed a new product incurring $130,000 in research and development costs during February. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $20,000 Sept. 1 Paid $45,000 to a quarterback to appear in commercials advertising the company's products. The commercials aired in September Oct. 1 Acquired a copyright for $110,000. The copyright has a useful life and legal life of 50 years. Prepare journal entries to record the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Date
