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Selected transactions of Continental Publishers, Inc., for 2016 are given below: Jan. 2 Paid $85,000 to purchase copyrights to a series of romantic novels. The
Selected transactions of Continental Publishers, Inc., for 2016 are given below:
Jan. 2 | Paid $85,000 to purchase copyrights to a series of romantic novels. The copyrights expire in 40 years, although sales of the novels are expected to stop after 10 years. |
Mar. 1 | Discovered a satellite dish antenna has been destroyed by lightning. The loss is covered by insurance and a claim is filed today. The antenna cost $9,180 when installed on July 1, 2015, and was being depreciated over 12 years with a $900 salvage alue. Straight-line depreciation was last recorded on December 31, 2015. Continental expects to receive an insurance settlement of $8,100. |
April 1 | Paid $140,000 to remodel space to create an employee exercise area on the lower level in a leased building. The building's remaining useful life is 40 years; the lease on the building expires in 12 years. |
July 1 | Paid $270,000 to acquire a patent on a new publishing process. The patent has a remaining legal life of 15 years. Continental estimates the new process will be utilized for 6 years before it becomes obsolete. |
Nov. 1 | Paid $90,000 to obtain a four-year franchise to sell a new series of computerized do-it-yourself manuals. |
Required
a. Prepare journal entries to record these transactions.
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