accounting problems for ACCOUNTING tutors only

Apr 24th, 2015
Anonymous
Category:
Business Finance
Price: $5 USD

Question description

Problem #3:   Intangible Assets

The intangible assets section of Redeker Company at December 31, 2011, is presented below.

  Patent ($70,000 cost less $7,000 amortization)   $63,000

  Franchise ($48,000 cost less $19,200 amortization)   28,800

    Total   $91,800

The patent was acquired in January 2011 and has a useful life of 10 years.  The franchise was acquired in January 2008 and also has a useful life of 10 years.  The following cash transactions may have affected intangible assets during 2012.

Jan. 2 Paid $45,000 legal costs to successfully defend the patent against infringement by another company.

Jan.–June Developed a new product, incurring $140,000 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 company’s products. The commercials will air in September and October.

Oct. 1 Acquired a franchise for $100,000.The franchise has a useful life of 50 years.

Instructions

(a) Prepare journal entries to record the transactions above.

(b) Prepare journal entries to record the 2012 amortization expense.


(c) Prepare the intangible assets section of the balance sheet at December 31, 2012


Tutor Answer

(Top Tutor) RylanWirkkala
School: UC Berkeley
PREMIUM TUTOR

Studypool has helped 1,244,100 students

Review from student
Anonymous
" Top quality work from this guy! I'll be back! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1824 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors