Problem 9-4A (Part Level Submission) The intangible assets section of Cedeno Cor

Question

Problem 9-4A (Part Level Submission)

The intangible assets section of Cedeno Corporation’s balance sheet at December 31, 2014, is presented here.

$70,740

18,390

$89,130

The patent was acquired in January 2014 and has a useful life of 10 years. The copyright was acquired in January 2008 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2015.

Patents ($78,600 cost less $7,860 amortization)

$70,740

Copyrights ($61,300 cost less $42,910 amortization)

18,390

Total

$89,130

Explanation / Answer

Date Account Titles Debit Credit Jan .2 Patent 54,000    Cash 54,000 Jan-Jun Research and development 248,600      Cash 248,600 Jul.1 Patent 20,000    Cash 20,000 Sep.1 Advertising Expense 60,600 cash 60,600 Oct.1 Copyright 230,000    Cash 230,000

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