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Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by Goins Company in 2017. 1. Goins
Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by Goins Company in 2017. 1. Goins developed a new manufacturing process, incurring research and development costs of $150,000. The company also purchased a patent for $63,000. In early January, Goins capitalized $213,000 as the cost of the patents. Patent amortization expense of $21, 300 was recorded based on a 10-year useful life. 2. On July 1, 2017, Goins purchased a small company and as a result acquired goodwill of $89,000. Goins recorded a half-year's amortization in 2017, based on a 50-year life ($890 amortization). The goodwill has an indefinite life. Prepare all journal entries necessary to correct any errors made during 2017. Assume the books have not yet been closed for 2017. (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.)
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