Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items: Patent with 4 remaining years of legal life $ 31,200 Goodwill 41,900 Dynamos financial condition just prior to the acquisition of these assets is shown in the following statements model: Assets = Liab. + Equity Rev. Exp. = Net Inc. Cash Flow Cash + Patent + Goodwill 99,600 + NA + NA = NA + 99,600 NA NA = NA NA Required: a. Compute the annual amortization expense for these items. b. Show the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model like the one shown earlier. c. Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1.

Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items: Patent with 4 remaining years of legal life Goodwill $31,200 41,900 Dynamo's financial condition just prior to the acquisition of these assets is shown in the following statements model: Liab. Equity Rev. Exp. Net Inc. Cash Flow + Assets Patent NA Cash 99,600 + Goodwill NA NA + 99,600 NA NA NA NA Required: a. Compute the annual amortization expense for these items. b. Show the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model like the one shown earlier. c. Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the annual amortization expense for these items. Patent per year Required: a. Compute the annual amortization expense for these items. b. Show the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model like the one shown earlier. c. Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1. Complete this question by entering your answers in the tabs below. Required A Required B Required c Show the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model like the one shown earlier. (In the Cash Flow column, u initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for Net Change and NA to indicate the element is not affected by the event. Enter any account balances with a minus sign.) DYNAMO MANUFACTURING Statements Model Assets = Liabilities + Equity Revenue Expenses Net Income Cash Flow Cash + Patent Goodwill = 99,600 + = + 99.600 NA + + Acquisition Amortization + + Required A Required B Required c Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record amortization expenses for patents. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal