Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 10-5 (Algo) Intangibles (LO10-1] In 2021, Bratten Fitness Company made the following cash purchases: 1. The exclusive right to manufacture and sell the X-Core

image text in transcribedimage text in transcribed

Exercise 10-5 (Algo) Intangibles (LO10-1] In 2021, Bratten Fitness Company made the following cash purchases: 1. The exclusive right to manufacture and sell the X-Core workout equipment from Symmetry Corporation for $204,000. Symmetry created the unique design for the equipment. Bratten also paid an additional $12,000 in legal and filing fees to attorneys to complete the transaction. 2. An initial fee of $265,000 for a three-year agreement with Silver's Gym to use its name for a new facility in the local area. Silver's Gym has locations throughout the country. Bratten is required to pay an additional fee of $5,400 for each month it operates under the Silver's Gym name, with payments beginning in March 2021. Bratten also purchased $404,000 of exercise equipment to be placed in the new facility. 3. The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $23,000. The book includes healthy recipes, recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its new facility, as well as make it available online. Required: Prepare a summary journal entry to record expenditures related to initial acquisitions. (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 the expenditures related to initial acquisitions. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance 101 Monopolies Accounting Audits And Blockchain

Authors: Louis Bevoc

1st Edition

1791808182, 978-1791808181

More Books

Students also viewed these Accounting questions