The intangible assets section of Ayayai Company at December 31, 2022, is presented here Patents ($83,000 cost less $8,300 amortization) $74,700 Franchises ($54,600 cost less $21,840 amortization) 32,760 Total $107,460 The patent was acquired in January 2022 and has a useful life of 10 years The franchise was acquired in January 2019 and also has a useful life of 10 years The following cash transactions may have affected intangible assets during 2023 Jan 2 Paid $35,100 legal costs to successfully defend the patent against infringement by another company Sept 1 Paid $50,000 to an extremely large defensive lineman to appear in commercials advertising the companys products The commercials aired in September and October Oct 1 Acquired a franchise for $141,400 The franchise has a useful life of 50 years Nov Dec Developed a new product, incurring $135,000 in research and development costs during December A patent was granted for the product on January 1, 2024 1 Prepare journal entries to record the transactions above (List all debit entries before credit entries Credit account titles are automatically indented when amount is entered Do not indent manually Record journal entries in the order presented in the problem If no entry is required, select No Entry for the account titles and enter 0 for the amounts )

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Posted on Jul 09, 2024

The intangible assets section of Ayayai Company at December 31, 2022, is presented here. Patents ($83,000 cost less $8,300 amortization) $74,700 Franchises ($54,600 cost less

The intangible assets section of Ayayai Company at December 31, 2022, is presented here.

Patents ($83,000 cost less $8,300 amortization)		$74,700
Franchises ($54,600 cost less $21,840 amortization)		32,760
Total		$107,460

The patent was acquired in January 2022 and has a useful life of 10 years. The franchise was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023.

Jan. 2		Paid $35,100 legal costs to successfully defend the patent against infringement by another company.
Sept. 1		Paid $50,000 to an extremely large defensive lineman to appear in commercials advertising the companys products. The commercials aired in September and October.
Oct. 1		Acquired a franchise for $141,400. The franchise has a useful life of 50 years.
Nov.Dec.		Developed a new product, incurring $135,000 in research and development costs during December. A patent was granted for the product on January 1, 2024.

1. Prepare journal entries to record the transactions above. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)