Question 1

During 2013, Martinez Corporation spent $155,520in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2013, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $28,080related to the patent were incurred as of October 1, 2013.

Your answer is correct.Prepare all journal entries required in 2013 and 2014 as a result of the transactions above.(Round answers to 0 decimal places, e.g. 8,564. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

2013

(To record research and development expenses)2013

(To record legal expenses)2013

(To record amortization expense)2014

SHOW LIST OF ACCOUNTS

SHOW SOLUTION

LINK TO TEXT

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Your answer is partially correct.Try again.On June 1, 2015, Martinez spent $20,160to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2015. Prepare all journal entries required in 2015 and 2016.(Round answers to 0 decimal places, e.g. 8,564. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

2015

(To record patents)2015

(To record amortization expense)2016

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

Your answer is partially correct.Try again.In 2017, Martinez determined that a competitors product would make the New Age Piano obsolete and the patent worthless by December 31, 2018. Prepare all journal entries required in 2017 and 2018.(Round answers to 0 decimal places, e.g. 8,564. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Question 1 During 2013, Martinez Corporation spent $155,520 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2013, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $28,080 related to the patent were incurred as of October 1, 2013. Your answer is correct. Prepare all journal entries required in 2013 and 2014 as a result of the transactions above. (Round answers to 0 decimal places, e.g. 8,564. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Dat Account Titles and Explanation e 201 3 Research and De Debit Credit 155520 Cash 155520 (To record research and development expenses) 201 3 Patents 28080 Cash 28080 (To record legal expenses) 201 3 Amortization Expe 702 Patents 702 (To record amortization expense) 201 4 Amortization Expe Patents SHOW LIST OF ACCOUNTS SHOW SOLUTION 2808 2808 LINK TO TEXT LINK TO TEXT On June 1, 2015, Martinez spent $20,160 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2015. Prepare all journal entries required in 2015 and 2016. (Round answers to 0 decimal places, e.g. 8,564. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Dat Account Titles and e Explanation 201 5 Patents Cash (To record patents) 201 5 Amortization Expe Patents (To record amortization expense) 201 6 Amortization Expe Patents SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Debit Credit 20160 20160 Your answer is partially correct. Try again. In 2017, Martinez determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2018. Prepare all journal entries required in 2017 and 2018. (Round answers to 0 decimal places, e.g. 8,564. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Amortization Expe Patents Debit Credit