Problem 10-07A a-c (Video) The intangible assets section of Marigold Company at December 31, 2020, is presented below. Patents ($85,000 cost less $8,500 amortization) Franchises ($52,000 cost less $20,800 amortization) $76,500 31,200 $107,700 Total The patent was acquired in January 2020 and has a useful life of 10 years. The franchise was acquired in January 2017 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2021. Jan. 2 Jan. - June Sept. 1 Paid $18,000 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $136,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life. Paid $54,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a franchise for $120,000. The franchise has a useful life of 50 years. Oct. 1 Your answer is correct. Prepare journal entries to record the transactions above. (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 o for the amounts.) Date Account Titles and Explanation Debit Credit +] Patents 8000.00 Cash 18000.00 ine Research and Development Expense Cash 136000.00 2 Advertising Expense 54000.00 Cash 54000.00 | Franchises 000.00 Cash 120000.00 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare journal entries to record the 2021 amortization expense. (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 o for the amounts.) Date Account Titles and Explanation Debit Credit | Dec. 31 | Amortization Expense 2650.00 Patents 2650.00 (To record patents amortization) | Dec. 31 Amortization Expense 5800.00 Franchises 5800.00 (To record franchise amortization) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare the intangible assets section of the balance sheet at December 31, 2021. (Round answers to O decimal places, e.g. 2,125.) Marigold Company Balance Sheet (Partial) December 31, 2021 Intangible Assets Patents 97150.00 Marigold Company Balance Sheet (Partial) December 31, 2021 Intangible Assets Patents 97150.00 Franchises 145400.00 T Total Intangible Assets 242550.00 Click if you would like to Show Work for this question: Open Show Work
