Question
The intangible assets section of Grouper Corporations balance sheet at December 31, 2022, is presented here. Patents ($89,500 cost less $8,950 amortization) $80,550 Copyrights ($55,000
The intangible assets section of Grouper Corporations balance sheet at December 31, 2022, is presented here.
Patents ($89,500 cost less $8,950 amortization) | $80,550 | |
Copyrights ($55,000 cost less $38,500 amortization) | 16,500 | |
Total | $97,050 |
The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023.
Jan. | 2 | Paid $54,000 legal costs to successfully defend the patent against infringement by another company. | |
Jan. | June | Developed a new product, incurring $235,500 in research and development costs. A patent was 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 $40,000. | |
Sept. | 1 | Paid $49,000 to a quarterback to appear in commercials advertising the companys products. The commercials will air in September and October. | |
Oct. | 1 | Acquired a copyright for $250,000. The copyright has a useful life and legal life of 50 years. |
Prepare journal entries to record the transactions.
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
choose a transaction date Jan. 2Jan.JuneJuly 1Sept. 1Oct. 1 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date Jan. 2Jan.JuneJuly 1Sept. 1Oct. 1 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date Jan. 2Jan.JuneJuly 1Sept. 1Oct. 1 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date Jan. 2Jan.JuneJuly 1Sept. 1Oct. 1 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date Jan. 2Jan.JuneJuly 1Sept. 1Oct. 1 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Dec. 31 | enter an account title to record amortization of patents on December 31 | enter a debit amount | enter a credit amount |
enter an account title to record amortization of patents on December 31 | enter a debit amount | enter a credit amount | |
(To record amortization of patents) | |||
Dec. 31 | enter an account title to record amortization of copyrights on December 31 | enter a debit amount | enter a credit amount |
enter an account title to record amortization of copyrights on December 31 | enter a debit amount | enter a credit amount | |
(To record amortization of copyrights) |
Prepare the intangible assets section of the balance sheet at December 31, 2023.
Grouper Corporation Balance Sheet (Partial) choose an accounting period December 31, 2023For the Month Ended December 31, 2023For the Year Ended December 31, 2023 | ||||||
---|---|---|---|---|---|---|
select an opening name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity | ||||||
enter a balance sheet item | $enter a dollar amount | |||||
enter a balance sheet item | enter a dollar amount | |||||
select a closing name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity | $enter a total amount for this section |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started