Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help with part c please During 2016, Flounder Corporation spent $151,200 in research and development costs. As a result, a new product called the New

image text in transcribedimage text in transcribedimage text in transcribed

help with part c please

During 2016, Flounder Corporation spent $151,200 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, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $19,200 related to the patent were incurred as of October 1, 2016. Your answer is partially correct. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (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 for the amounts.) Date Account Titles and Explanation Debit Credit 2016 Research and Development Expense 151200 Cash 151200 (To record research and development expenses) 2016 Patents 19200 Cash 19200 (To record legal expenses) 2016 Amortization Expense 480 Patents 480 (To record amortization expense) 2017 Amortization Expense 1920 Patents 1920 e Textbook and Media List of Accounts On June 1, 2018, Flounder spent $9,920 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2018. Prepare all journal entries required in 2018 and 2019. (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 for the amounts.) Debit Credit Date Account Titles and Explanation 2018 Patents 9920 Cash 9920 (To record patents) 2018 Amortization Expense 2060 Patents 2060 (To record amortization expense) Amortization Expense 2019 2160 Patents 2160 e Textbook and Media List of Accounts Your answer is partially correct. In 2020, Flounder determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2021. Prepare all journal entries required in 2020 and 2021. (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 for the amounts.) Your answer is partially correct. In 2020, Flounder determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2021. Prepare all journal entries required in 2020 and 2021. (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 for the amounts.) Debit Credit Account Titles and Explanation Amortization Expense 0 Patents 0 e Textbook and Media List of Accounts

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_2

Step: 3

blur-text-image_3

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

Consolidated Financial Reporting

Authors: Paul Taylor

1st Edition

1853962503, 9781853962509

More Books

Students also viewed these Accounting questions

Question

Define Administration?

Answered: 1 week ago

Question

Define Decision making

Answered: 1 week ago

Question

What are the major social responsibilities of business managers ?

Answered: 1 week ago