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The intangible assets and goodwill reported by Sheridan Corporation at December 31, 2020, follow: $35,920 17,960 Copyrights (#1) Less: Accumulated amortization Trademarks Goodwill Total $
The intangible assets and goodwill reported by Sheridan Corporation at December 31, 2020, follow: $35,920 17,960 Copyrights (#1) Less: Accumulated amortization Trademarks Goodwill Total $ 17,960 54,630 116,150 $188,740 A copyright (#1) was acquired on January 1, 2019, and has a useful life of four years. The trademarks were acquired on January 1, 2017, and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually. The following cash transactions may have affected intangible assets and goodwill during 2021: 5 Jan. July 1 Sept. 1 Paid $7,650 in legal costs to successfully defend the trademarks against infringement by another company. Developed a new product, incurring $208,200 in research and $47,300 in development costs with probable future benefits. The product is expected to have a useful life of 22 years. Paid $63,560 to a popular hockey player to appear in commercials advertising the company's products. The commercials will air in early September. Acquired another copyright (#2) for $168,000. The new copyright has a useful life of six years. Determined the fair value of the goodwill to be $93,320. There was no indication that the copyrights or trademarks were impaired. Oct. 1 Dec. 31 Date Account Titles and Explanation Debit 1.5 Trademarks Credit 7650 Cash 7650 y 1 Research Expenses 208200 Cash 208200 (To record research expense) y 1 Development Costs 47300 Cash 47300 (To record development costs) pt. 1 Advertising Expense 63560 Cash 63560 t. 1 Copyrights 168000 Cash 168000 Date Dec. Account Titles and Explanation Amortization Expense Debit Credit 31 8980 Accumulated Amortization - Copyrights 8980 (To record amortization on copyrights acquired on January 1, 2019) Dec. 31 Amortization Expense 7000 Accumulated Amortization - Copyrights 7000 (To record amortization on copyrights acquired on October 1, 2021) Dec. 31 Amortization Expense 1075 Accumulated Amortization - Development Costs 1075 (To record amortization expense on development cost) Dec. 31 Impairment Loss 22830 Goodwill 22830 SHERIDAN CORPORATION Statement of Financial Position (Partial) Assets ets: $ $ $
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