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Janes Company provided the following information on intangible assets: a. A patent was purchased from the Lou Company for $800,000 on January 1,2019 . Janes
Janes Company provided the following information on intangible assets: a. A patent was purchased from the Lou Company for $800,000 on January 1,2019 . Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $370,000 when Lou sold it to Janes. b. During 2021, a franchise was purchased from the Rink Company for $520,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase. c. Janes incurred research and development costs in 2021 as follows: d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. Required: 1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information. 2. Prepare a schedule showing the intangible asset section of Janes's December 31,2021 , balance sheet. Journal entry worksheet 4 Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet
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