Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information concerns the intangible assets of Epstein Corporation: On June 30, 2021, Epstein completed the acquisition of the Johnstone Corporation for $1,760,000 in

The following information concerns the intangible assets of Epstein Corporation:

  1. On June 30, 2021, Epstein completed the acquisition of the Johnstone Corporation for $1,760,000 in cash. The fair value of the net identifiable assets of Johnstone was $1,500,000.
  2. Included in the assets purchased from Johnstone was a patent that was valued at $64,400. The remaining legal life of the patent was 12 years, but Epstein believes that the patent will only be useful for another seven years.
  3. Epstein acquired a franchise on October 1, 2021, by paying an initial franchise fee of $165,600. The contractual life of the franchise is 9 years.

Required:

1a. Prepare year-end adjusting journal entries to record amortization expense on the intangibles at December 31, 2021. ((Do not round intermediate calculations.). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

  1. Record the goodwill amortization.
  2. Record the amortization of patent.
  3. Record the amortization of franchise. 1b. Prepare the intangible asset section of the December 31, 2021, balance sheet. (Do not round intermediate calculations.)

image text in transcribed

\begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Partial Balance Sheet } \\ \multicolumn{2}{|c|}{ December 31, 2021} \\ \hline Intangible assets: \\ \hline Goodwill \\ \hline Patent & \\ \hline Franchise \\ \hline Total intangibles & \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting And Auditing In Sovereign Operations Technical Guidance Note

Authors: Asian Development Bank

1st Edition

9292698192, 978-9292698195

More Books

Students also viewed these Accounting questions