On Feb 1, 2020, the Bean company completed the acquisition of the Coffee Corporation for $3,410,000 in cash. The fair value of the net identifiable assets of Coffee was $2,950,000.

Bean purchased a patent on April 30, 2020 that was valued at $101,400. The remaining legal life of the patent was 17 years, but Bean believes that the patent will only be useful for another nine years.

Bean received approval for a trademark on July 1, 2020, by paying a legal fee of $120,000. The contractual life of the trademark is 10 years.

Bean spent $57,000 from Sept 1 through Sept 30 for experimental purposes in connection with the development of a new product.

On Oct 1, Bean installed a new part, at a cost of $88,000, on it's most used coffee machine that would make the machine more efficient to produce more bags of coffee.

The machine has a useful life of 8 years remaining with no salvage value, and a current book value of 208,000. Bean uses straight-line depreciation on it's machines.

On Dec 31, 2020 Bean Co. traded one of its old machines with an original cost of $13,400 and a book value of $4,800, plus cash of $12,500 for a new machine that had a fair value of $20,200. The exchange has commercial substance.

Prepare the entries made throughout the year

Prepare the 12/31/20 year end adjusting entries