Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2 0 2 4 , Bratten Fitness Company made the following cash purchases: The exclusive right to manufacture and sell the X - Core

image text in transcribed
In 2024, Bratten Fitness Company made the following cash purchases:
The exclusive right to manufacture and sell the X-Core workout equipment from Symmetry Corporation for $200,000. Symmetry
created the unique design for the equipment. Bratten also paid an additional $10,000 in legal and filing fees to attorneys to
complete the transaction.
An initial fee of $300,000 for a three-year agreement with Silver's Gym to use its name for a new facility in the local area. Silver's
Gym has locations throughout the country. Bratten is required to pay an additional fee of $5,000 for each month it operates
under the Silver's Gym name, with payments beginning in March 2024. Bratten also purchased $400,000 of exercise equipment
to be placed in the new facility.
The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $25,000. The book includes healthy recipes,
recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its
new facility, as well as make it available online.
Required:
Prepare a summary journal entry to record expenditures related to initial acquisitions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Journal entry worksheet
1
Record the expenditures related to initial acquisitions.
Note: Enter debits before credits.In 2024, Bratten Fitness Company made the following cash purchases:
The exclusive right to manufacture and sell the X-Core workout equipment from Symmetry Corporation for $200,000. Symmetry created the unique design for the equipment. Bratten also paid an additional $10,000 in legal and filing fees to attorneys to complete the transaction.
An initial fee of $300,000 for a three-year agreement with Silvers Gym to use its name for a new facility in the local area. Silvers Gym has locations throughout the country. Bratten is required to pay an additional fee of $5,000 for each month it operates under the Silvers Gym name, with payments beginning in March 2024. Bratten also purchased $400,000 of exercise equipment to be placed in the new facility.
The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $25,000. The book includes healthy recipes, recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its new facility, as well as make it available online.
Required:
Prepare a summary journal entry to record expenditures related to initial acquisitions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
image text in transcribed

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

Financial and Managerial Accounting the basis for business decisions

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

18th edition

125969240X, 978-1259692406

More Books

Students also viewed these Accounting questions

Question

How do employees perceptions of fairness affect motivation?

Answered: 1 week ago

Question

9. What are the main purposes of setting labor standards?

Answered: 1 week ago

Question

explain the uses and limitations of traditional risk measures; LO1

Answered: 1 week ago