Exercise 1

On January 4, 2030, Ambers Boutique paid cash of 595, 00 for a lOyear franchise. Prepare the entry to record the purchase of the franchise and the adjusting entry at December 31, 2020.

Exercise 2

Assume Barrick Gold Corporation purchased mineral rights for a gold mine in Peru on October 1, 2020, by paying cash of $5,00,000 and incuring a non current note payable for the $30,000.00 balance. Barrick also paid S4.000,000 cash for water rights needed to mine the gold. Barrick is planning to mine this area for I0 years: Record the purchase of the mineral rights and Water rights on October 1, 2020, and the amortization on December 31, 2020, Barrick's gearend. Assume Barrick uses the straight. line method to amortize intangibles.

Exercise 3

Jazzy Antiques purchased the copyright on a watercolour painting for SIT7,480 on January 1, 2020. The copyright legally protects its ovner for 19 more years. Howere, Jazzy plans to market and sell prints of the original for the next 12 years only Prepare journal entries to record the purchase of the copyright and the annual amortization of the copyright on December 31,2020. The company uses the straight line method to amortize intangibles.