QUESTION 1 (3 MARKS] During the year 2020, Alphabet has the below transactions related to the intangible assets: Date Amount $ 500,000 Jan 1, 2020 Purchased Patent (10-year life) Apr, 1,2020 7-year franchise (expiration date 1/4/2027) Oct, 1, 2020 Research and development cost 140,000 96,000 REQUIRED: (a) Prepare necessary journal entries to record these intangible assets. All costs incurred were for cash (1 Mark) (b) Prepare necessary adjusting entries on Dec 31, 2020 to record the 2020 amortization expense. Assume that the research and development cost were incurred before attaining the technological feasibility, (2 Marks) QUESTION 2 [8 MARKS] Presented below are selected transactions at IPL Company for 2019 Date Transactions Jul 1, 2019 Sold machinery that was purchased on Jan 1, 2015. The machinery cost $40,000 on that date. It had a useful life of 4 years with no salvage value. The machinery was sold for $9,000. (3 Marks) July 31, 2019 Discarded an equipment that was purchased on August 1, 2018. The equipment cost $18,000. It was depreciated based on a 4-year useful life with a $2,000 salvage value. (3 Marks) Dec 31, 2019 Retired a delivery truck that was purchased on February 1, 2015. The delivery truck cost $36,000 on that date. It had a useful life of 3 years with no salvage value (2 Marks) IPL Company uses straight-line depreciation method for all of the assets. REQUIRED: Prepare relevant journal entries to record the disposal of the assets of the above transactions and the depreciation for the financial year 2019 (if applicable). The depreciation for the year ended on 31/12/2018 is already recorded. a QUESTION 3 [4 MARKS] The following are the situation pertaining to monthly cash sales of Matrix establishments for year 2018: The company does not segregate sales and sales tax. Its register total for January 31 is $29,430, which includes an 9% sales tax. (3 Marks) b. The company enters sales and sales tax sepa tely on its cash register. On February 28, the register totals are sales $66,000 and sales taxes $5,940. (1 Mark) REQUIRED: Prepare the entry to record the sales transactions and related taxes