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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
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 $210,000. Symmetry created the unique design for the equipment. Bratten also paid an additional $15,000 in legal and filing fees to attorneys to complete the transaction.
- An initial fee of $295,000 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 $6,000 for each month it operates under the Silvers Gym name, with payments beginning in March 2024. Bratten also purchased $410,000 of exercise equipment to be placed in the new facility.
- The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $29,000. 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.
Journal entry worksheet Record the expenditures related to initial acquisitions. Note: Enter debits before credits
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