I need help with this and would like to know how you got your answer so I understand better. The intangible assets section of Sappelt Company at December 31, 2017, is presented below. | Patents ($79,000cost less $7,900amortization) | $71,100 | | Franchises ($46,000cost less $18,400amortization) | 27,600 | | Total | $98,700 |
The patent was acquired in January 2017 and has a useful life of10years. The franchise was acquired in January 2014 and also has a useful life of10years. The following cash transactions may have affected intangible assets during 2018. | Jan. 2 | Paid $31,500legal costs to successfully defend the patent against infringement by another company. | | Jan.?June | Developed a new product, incurring $148,000in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life. | | Sept. 1 | Paid $51,000to an extremely large defensive lineman to appear in commercials advertising the company?s products. The commercials will air in September and October. | | Oct. 1 | Acquired a franchise for $116,000. The franchise has a useful life of50years. |
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| Prepare journal entries to record the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| Prepare journal entries to record the 2018 amortization expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. 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 | | | | | | | | | | | (To record patents amortisation) | | | | | | | | | | | (To record franchise amortisation) |
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| Prepare the intangible assets section of the balance sheet at December 31, 2018. (Round answers to 0 decimal places, e.g. 2,125.) | Sappelt Company Balance Sheet (Partial) | | | | | $ | | | | | | $ |
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The intangible assets section of Sappelt Company at December 31, 2017, is presented below. Patents ($79,000 cost less $7,900 amortization) Franchises ($46,000 cost less $18,400 amortization) $71,100 27,600 Total $98,700 The patent was acquired in January 2017 and has a useful life of 10 years. The franchise was acquired in January 2014 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2018. Jan. 2 Jan.-June Sept. 1 Oct. 1 Paid $31,500 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $148,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life. Paid $51,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a franchise for $116,000. The franchise has a useful life of 50 years. Don't show me this message again for the assignment Prepare journal entries to record the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Don't show me this message again for the assignment Credit Prepare journal entries to record the 2018 amortization expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Date Debit Credit (To record patents amortisation) (To record franchise amortisation) Don't show me this message again for the assignment Prepare the intangible assets section of the balance sheet at December 31, 2018. (Round answers to 0 decimal places, e.g. 2,125.) Sappelt Company Balance Sheet (Partial) $ $
