Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 12-9 During 2013, Novak Corporation spent $158,400 in research and development costs. As a result, a new product called the New Age Piano was

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Exercise 12-9 During 2013, Novak Corporation spent $158,400 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 $32,400 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 O decima 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. Debit Credit Date Account Titles and Explanation 2013 [Research and Development Expense 158,400 158,400 Cash (To record research and development expenses) 2013 Legal Fees Expense 32,400 Cash 32,400 To record legal expenses) 2013 Amortization Expense 9540 Intangible Assets 9540 (To record amortization expense) au 2014 Amortization Expense 19080 Intangible Assets 19080 On June 1, 2015, Novak spent $23,040 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 O 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 o f the amounts. 2 2 Date Account Titles and Explanation Debit Credit 2015 (To record patents) 2015 (To record amortization expense) 2016 In 2017, Novak determined that a competitor's 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 O 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

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

Cost And Management Accounting An Introduction

Authors: Colin Drury

7th Edition

1408032139, 978-1408032138

More Books

Students also viewed these Accounting questions