Haley Company, organized in 2014, has these transactions related to intangible a

Question

Haley Company, organized in 2014, has these transactions related to intangible assets in that year: Prepare the necessary entries to record these transactions related to intangibles. All costs incurred were for cash. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Make an entry as of December 31, 2014, recording any necessary amortization. (Round answers to O decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Make an entry as or December 31, 2014, recording any necessary amortization. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Indicate what the intangible asset account balances should be on December 31, 2014.

Explanation / Answer

Patent A/c

          To Cash A/c

(Being patent Purchased)

$351,000

$351,000

Goodwill A/c

    To Business Purchased A/c

(Being Business Purchased)

$386,700

Franchise A/c

        To Cash A/c

(Being Franchise purchased)

$6,20,900

$6,20,900

Research and Development Expenses A/c

         To Cash A/c

(Being Expenses Paid)

$184,400

$184,400

Amortisation A/c

To Patent A/c

To Franchise A/c

(Being intangible assets Amortised)

$70,200

$68988.88

Patent $280,800

Goodwill $386,700

Franchise $551,911.12

Date Particulars Debit Amount Credit Amount Jan 2

Patent A/c

          To Cash A/c

(Being patent Purchased)

$351,000

$351,000

Apr 1

Goodwill A/c

    To Business Purchased A/c

(Being Business Purchased)

$386,700

$386,700 July 1

Franchise A/c

        To Cash A/c

(Being Franchise purchased)

$6,20,900

$6,20,900

Sep1

Research and Development Expenses A/c

         To Cash A/c

(Being Expenses Paid)

$184,400

$184,400

Amortisation A/c

To Patent A/c

To Franchise A/c

(Being intangible assets Amortised)

$139,188.88

$70,200

$68988.88

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