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Novak Company, organized in 2020, has the following transactions related to intangible assets. 1/2/20 Purchased patent (6-year life) $504,000 4/1/20 Goodwill purchased (indefinite life) 360,000
Novak Company, organized in 2020, has the following transactions related to intangible assets.
| 1/2/20 | Purchased patent (6-year life) | $504,000 | ||
| 4/1/20 | Goodwill purchased (indefinite life) | 360,000 | ||
| 7/1/20 | 15-year franchise | 480,000 | ||
| 9/1/20 | Research and development costs | 164,000
Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2020, recording any necessary amortization. (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.) |
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