 | | Exercise 12-9 During 2013, Marigold Corporation spent $154,080 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2013, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $28,080 related to the patent were incurred as of October 1, 2013. | | |  |  | Prepare all journal entries required in 2013 and 2014 as a result of the transactions above. (Round answers to 0 decimal places, e.g. 8,564. 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.) | Date | Account Titles and Explanation | Debit | Credit | | 2013 | 
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| | | (To record research and development expenses) | | | | 2013 | 
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| | | (To record legal expenses) | | | | 2013 | 
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| | | (To record amortization expense) | | | | 2014 | 
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| | LINK TO TEXT LINK TO TEXT | | | |  |  |  | On June 1, 2015, Marigold spent $18,720 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2015. Prepare all journal entries required in 2015 and 2016. (Round answers to 0 decimal places, e.g. 8,564. 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.) | Date | Account Titles and Explanation | Debit | Credit | | 2015 | 
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| | | (To record patents) | | | | 2015 | 
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| | | (To record amortization expense) | | | | 2016 | 
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| | LINK TO TEXT LINK TO TEXT | | | |  |  |  | In 2017, Marigold determined that a competitors product would make the New Age Piano obsolete and the patent worthless by December 31, 2018. Prepare all journal entries required in 2017 and 2018. (Round answers to 0 decimal places, e.g. 8,564. 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.) | Account Titles and Explanation | Debit | Credit | | 
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