Hornet Technologies conducted the following cash transactions on January 1. (Click the icon to view the transactions.) Read the requirements Requirement a. Prepare the journal entries to record each of the transactions. (Record debits first, then credits. Exclude explanations from any journal entries.) 1. Paid $693,000 to fund intemal research designed to develop a new digital scanner. The company expects the useful life to be 3 years. Account January 1 2. Patented a product based on internal research that could be sold to consumers. Before applying for the patent, incurred additional costs of $150,000 to complete product development ensuring the product was technologically feasible. Paid $15,900 for patent filing costs and legal fees to successfully defend the patent. The company expects the new technology will be profitable for a 3-year period. (Prepare a compound entry.) Account January 1 3. Leased three floors of office space. The lease was secured by making an advance payment of $340,000. The lease is a 10-year lease with no renewal options. Account January 1 More info 1. Paid $693,000 to fund internal research designed to develop a new digital scanner. The company expects the useful life to be 3 years. 2. Patented a product based on internal research that could be sold to consumers. Before applying for the patent, incurred additional costs of $150,000 to complete product development ensuring the product was technologically feasible. Paid $15,900 for patent filing costs and legal fees to successfully defend the patent. The company expects the new technology will be profitable for a 3-year period. 3. Leased three floors of office space. The lease was secured by making an advance payment of $340,000. The lease is a 10-year lease with no renewal options. 4. Paid $590,000 to renovate the leased property to prepare the leased floors for intended use. The useful life of the renovations is estimated at 10 years. 5. Paid $49,500 to acquire a franchise to distribute ICC external hard drives for a 9-year period. Homet Technologies conducted the following cash transactions on January 1. Click the icon to view the transactions.) Read the requirements. 3. Leased three floors of office space. The lease was secured by making an advance payment of $340,000. The lease is a 10-year lease with no renewal options. Account January 1 4. Paid $590,000 to renovate the leased property to prepare the leased floors for intended use. The useful life of the renovations is estimated at 10 years. Account January 1 5. Paid $49,500 to acquire a franchise to distribute ICC external hard drives for a 9-year period. Account January 1 Hornet Technologies conducted the following cash transactions on January 1. Click the icon to view the transactions.) Read the requirements. Requirement b. Assume that Hornet acquired Donlan Development last year. Homet recorded the following intangible assets on the date of acquisition: Goodwill, $1,500,000 Donlan Development Trademark, $550,000 Renewable licenses, $41,000 Prepare the year-end adjusting entries required for each of Hornet's intangible assets. Assume that the straight-line method is used and a full year's amortization is taken in the year of acquisition (Do not round intermediary calculations. Round the final answer that is entered into the input fields to the nearest whole dollar. Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining fields in the table blank. Hornet Technologies uses the applicable contra-asset accounts when recording amortization of intangible assets.) Record any amortization expense on the goodwill. Account Current Year-End Record any amortization expense on the trademark. Account Record any amortization expense on the renewable license. Current Year-End Hornet Technologies conducted the following cash transactions on January 1. Click the icon to view the transactions.) Read the requirements. Record any amortization expense on the renewable license. Account Record any amortization expense on the patent. Account Record any amortization expense on the leasehold. Account Record any amortization expense on the leasehold improvements. Account Current Year-End Current Year-End Current Year-End Current Year-End Hornet Technologies conducted the following cash transactions on January 1. Click the icon to view the transactions.) Read the requirements Record any amortization expense on the leasehold improvements. Account Record any amortization expense on the franchise. Account Current Year-End Current Year-End Requirement c. Indicate the effects of these transactions on the current year-end income statement, balance sheet (excluding the effect on the cash balance), and cash flow statement using the direct and the indirect methods. First indicate the effects of these transactions on the balance sheet (ignore cash effects) and income statement. (For Requirement b, consider only the transactions that required a journal entry. If ant input field is not used in the table, leave the field empty; do not select a label. Abbreviations Used: LT-Long-term.) Transaction 1 2 Income Statement Balance Sheet Hbmit Technologies conducted the following cash transactions on January 1. Click the icon to view the transactions.) Read the requirements Requirement c. Indicate the effects of these transactions on the current year-end income statement, balance sheet (excluding the effect on the cash balance), and cash flow statement using the direct and the indirect methods First indicate the effects of these transactions on the balance sheet (ignore cash effects) and income statement. (For Requirement b, consider only the transactions that required a journal entry. If an input field is not used in the table, leave the field empty; do not select a label. Abbreviations Used: LT Long-term.) 41 5 Transaction Income Statement Balance Sheet Req. b Now indicate the effects of these transactions on the cash flow statement under the direct and indirect methods. When considering the effect on the statement of cash flow, consider only items that are separately stated on the cash flow statement (exclude items considered in the calculation of net income). (If an input field is not used in the table, leave the field empty, do not select a label. If there is no effect on the financial statement, select the applicable "No effect" response and leave all remaining cells blank. Abbreviations Used: NC Noncash, NCIF Noncash Investing and financing activities. OA Operating activities, IA Investing activities, FA Financing activities.) Transaction Direct Cash Flow Statement Indirect Homet Technologies conducted the following cash transactions on January 1. (Click the icon to view the transactions.) Read the requirements. 5 Req. bi Now indicate the effects of these transactions on the cash flow statement under the direct and indirect methods. When considering the effect on the statement of cash flow, consider only items that are separately stated on the cash flow statement (exclude items considered in the calculation of net income). (If an input field is not used in the table, leave the field empty, do not select a label. If there is no effect on the financial statement, select the applicable "No effect" response and leave all remaining cells blank. Abbreviations Used: NC Noncash, NCIF Noncash Investing and financing activities. OA Operating activities, IA Investing activities, FA Financing activities.) 2 3 4 5 Req. b. Transaction Direct Cash Flow Statement Indirect