Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help needed with part C During 2021, Ayayai Corporation spent $144,000 in research and development costs. As a result, a new product called the New
Help needed with part C During 2021, Ayayai Corporation spent $144,000 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, 2021, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $17,400 related to the patent were incurred as of October 1,2021 . (a) Prepare all journal entries required in 2021 and 2022 as a result of the transactions above. (Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter of for the amounts. List all debit entries before credit entries. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Research and Development Expentse (To record research and development expenses) Patents 17,400 (To record legal expenses) 2021 Amortization Expense 435 Patents (To record amortization expense) 2022 Amortization Expense \begin{tabular}{|} 1.740 \\ \hline \end{tabular} 1,740 Patents On June 1, 2023, Ayayai spent \$11,420 to successfully prosecute a patent infringement suit. As a result. the estimate of useful life was extended to 12 years from June 1, 2023. Prepare all journal entries required in 2023 and 2024. (Credit account titles are automotically indented when amount is entered. Do not indent manually, If no entry is required, select "No Entry" for the account tieles and enter Of for the amounts: List all debit entries before credit entries. Record entries in the order disployed in the probiem statement.) In 2025, Ayayai determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2026. Prepare all journal entries required in 2025 and 2026. (Credit occoumt titbes are outomatically 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 Uist debit entry before credit entry
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started