9:06 PM * 75%.\" Exercise 9-14 Kopke Company, organized in 2012, has these trans

Question

9:06 PM * 75%." Exercise 9-14 Kopke Company, organized in 2012, has these transactions related to intangible assets in that year: Jan. 2 Purchased a patent (6-year life) $323,200 Apr. 1 Goodwill acquired as a result of purchased business (indefinite life) $320,800 July 1 Acquired a 9-year franchise; expiration date July 1, 2021, s554,300. Sept. 1 Research and development costs $181,500 (a) Prepare (Record entries in the order displayed in the problem statement. Credit account titles are automatically inde the necessary entries to record these transactions related to intangibles. All costs incurred were for cash. nted when amount is entered. Do not indent manually.) ccount Titles and Explanation dy (b) Make an entry as of December 31, 2012, recording any necessary amortization. (Round answers to 0 decimal places, e.g. 125. Credit account tities are automatically indented when amount is entered. Do not Indent manually.)

Explanation / Answer

We Summarise as follows

For Amortization purpose, Provisons of IRS has been considered, 15 year base for amortization of Intangible assets

Date Particulars Debit Credit 2-Jan Patent 323200 Cash 323200 1-Apr Goodwill 320800    Cash 320800 1-Jul Franchise 554300 Cash 554300 1-Sep Reasearch & Development Expense 181500 Cash 181500 31-Dec Amortization expense - Patent 21547 Amortization expense - Franchise 36953 Amortization expense - Goodwill 21387 Accumulated amortixation -Patent 21547 Accumulated amortixation -Franchise 36953 Accumulated amortixation -Goodwill 21387 Value at end of 2012 Patent 301653 Franchise 517347 Goodwill 299413

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