Janes Company provided the following information on intangible assets: a. A patent was purchased from the Lou Company for $700,000 on January 1, 2016. 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 $350,000 when Lou sold it to Janes. b. During 2018, a franchise was purchased from the Rink Company for $500,000. 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 2018 as follows: Materials and supplies Personnel Indirect costs $140,000 180,000 60,000 $380,000 Total d. Effective January 1, 2018, 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 2016 through 2018 to reflect the above information. 2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2018, balance sheet Complete this question by entering your answers in the tabs below Required 1Required 2 Prepare the entries necessary for years 2016 through 2018 to reflect the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 4 6 Record the purchase of a patent. Note: Enter debits before credits Date General Journal Debit Credit January 01, 2016 Patent 700,000 Cash 700,000 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the entries necessary for years 2016 through 2018 to reflect the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 3 4 6 Record amortization on the patent. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2016 Amortization expense 70,000 Patent 70,000 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1Required 2 Prepare the entries necessary for years 2016 through 2018 to reflect the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 6 Record amortization on the patent. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2017 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1Required 2 Prepare the entries necessary for years 2016 through 2018 to reflect the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 4 6 Record the purchase of a franchise. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1Required 2 Prepare the entries necessary for years 2016 through 2018 to reflect the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 3 4 6 Record amortization of franchise. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the entries necessary for years 2016 through 2018 to reflect the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 4 Record research and development expenses. Note: Enter debits before credits. Date General Journal Debit Credit May 20, 2018 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the entries necessary for years 2016 through 2018 to reflect the above information. (If no entry is required for transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 4 Record amortization on the patent after change in useful life. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule showing the intangible asset section of Janes's December 31, 2018, balance sheet Partial Balance Sheet December 31, 2018 Intangible assets: Total intangibles K Required 1 Required 2
