Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The intangible assets section of Cedeno Corporation's balance sheet at December 31, 2014, is presented here. Patents ($60,000 cost less $6,000 amortization) $54,000 Copyrights ($36,000

image text in transcribed
The intangible assets section of Cedeno Corporation's balance sheet at December 31, 2014, is presented here. Patents ($60,000 cost less $6,000 amortization) $54,000 Copyrights ($36,000 cost less $25, 200 amortization) 10.800 Total $64.800 The patent was acquired in January 2014 and has a useful life of 10 years. The copyright was acquired in January 2008 and also has a useful life of 10 years. The following cash transactions have affected intangible assets during 2015. Jan. 2 Paid $46, 800 legal costs to successfully defend the patent against infringement another company. Jan. Developed a new product, incurring $230,000 in research and development costs. A patent was June granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $20,000. Sept 1 Paid $40,000 to a quarterback to appear in commercial advertising the company's products. The commercials will air in September and October. Oct. 1 Acquired a copyright for $200,000. The copyright has a useful life and legal life of 50 years. (a) Prepare journal entries to record the transactions. (b) Prepare journal entries to record the 2015 amortization expense for intangible assets. (c) Prepare the intangible assets section of the balance sheet at December 31, 2015. (d) Prepare the note to the financial statements on Cedeno Corporation intangible assets as of December 31, 2015

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

The Politics Of Internal Auditing

Authors: Dr. Larry Rittenberg, Patty Miller

1st Edition

0894139053, 978-0894139055

More Books

Students also viewed these Accounting questions

Question

9. What are the three types of inventory that a company may have?

Answered: 1 week ago