The intangible assets and goodwill reported by Wildhorse Corporation at December 31, 2020, follow: $39,580 Copyrights (#1) Less: Accumulated amortization Trademarks 19,790 $19,790 54,620 Goodwill 128,850 Total $203,260 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: Jan. 5 July 1 Sept. 1 Paid $7,470 in legal costs to successfully defend the trademarks against infringement by another company. Developed a new product, incurring $218,380 in research and $53,400 in development costs with probable future benefits. The product is expected to have a useful life of 20 years. Paid $58.870 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 $177,000. 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 (a) Your Answer Correct Answer (Used) Prepare journal entries to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan.5 Trademarks 7.470 Cash 7 July 1 Research Expenses 218,380 Cash 218. (To record research expense) July 1 Development Costs 53.400 Cash 53 (To record development costs) Sept. 1 Advertising Expense 58.870 Cash 58. Oct. 1 Copyrights 177,000 Cash 177 (b) Prepare any adjusting journal entries required at December 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record amortization on copyrights acquired on January 1, 2019) Dec. 31 (To record amortization on copyrights acquired on October 1, 2021) Dec. 31 (To record amortization expense on development cost) Dec. 31 e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit
