Question
The intangible assets section of Whispering Winds Company at December 31, 2022, is presented here. Patents ($60,000 cost less $6,000 amortization) $54,000 Franchises ($35,000 cost
The intangible assets section of Whispering Winds Company at December 31, 2022, is presented here.
Patents ($60,000 cost less $6,000 amortization) | $54,000 | |
Franchises ($35,000 cost less $14,000 amortization) | 21,000 | |
Total | $75,000 |
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 $18,000 legal costs to successfully defend the patent against infringement by another company. | |
Sept. 1 | Paid $45,000 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 $110,000. The franchise has a useful life of 50 years. | |
Nov.Dec. | Developed a new product, incurring $130,000 in research and development costs during December. A patent was granted for the product on January 1, 2024. |
Prepare the intangible assets section of the balance sheet at December 31, 2023.
Whispering Winds Company Balance Sheet (Partial) choose the accounting period December 31, 2023For the Year Ended December 31, 2023For the Month Ended December 31, 2023 | |||
---|---|---|---|
select an opening section name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentOwner's EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Owner's Equity | |||
enter a balance sheet item | $enter a dollar amount | ||
enter a balance sheet item | enter a dollar amount | ||
select a closing section name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentOwner's EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Owner's Equity | $enter a total amount for this section |
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