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The intangible assets section of Windsor, Inc. at December 31, 2019, is presented below. Patents ($90,000 cost less $9,000 amortization) $81,000 Franchises ($54,000 cost less
The intangible assets section of Windsor, Inc. at December 31, 2019, is presented below.
Patents ($90,000 cost less $9,000 amortization) | $81,000 | |
Franchises ($54,000 cost less $21,600 amortization) | 32,400 | |
Total | $113,400 |
The patent was acquired in January 2019 and has a useful life of 10 years. The franchise was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2020.
Jan. 2 | Paid $27,000 legal costs to successfully defend the patent against infringement by another company. | |
Jan.June | Developed a new product, incurring $146,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life. | |
Sept. 1 | Paid $50,000 to an extremely large defensive lineman to appear in commercials advertising the companys products. The commercials will air in September and October. | |
Oct. 1 | Acquired a franchise for $118,000. The franchise has a useful life of 50 years. |
please help with Amortization expense and balance sheet
Your answer is partially correct. Try again. Prepare journal entries to record the 2020 amortization expense. (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 O for the amounts. Round answers to o decimal places, e.g. 2,125.) Credit Date Account Titles and Explanation Debit 8100 Dec. 31 Amortization Expense Patents 8100 To record patents amortization) 3240 Dec. 31 Amortization Expense Franchises 3240 (To record franchise amortization) Your answer is partially correct. Try again. Prepare the intangible assets section of the balance sheet at December 31, 2020. (Round answers to 0 decimal places, e.g. 2,125.) Windsor, Inc. Balance Sheet (Partial) December 31, 2020 Intangible Assets 900 Patents 2160 Franchises Total Intangible Assets 3060 Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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