Clanton Company engaged in the following transactions during 2011. On January 3,
ID: 2487294 • Letter: C
Question
Clanton Company engaged in the following transactions during 2011.
On January 3, 2011, Clanton purchased a copyright from Dalton Company with a cost of $250,000 with a remaining useful life of 25 years.
On January 10, 2011, Clanton purchased a trademark from Felton Company with a cost of $700,000.
On July 1, 2011, Clanton purchased a patent from Garrison Company at a cost of $80,000. The remaining legal life of the patent is 15 years and the expected useful life is 11 years.
On July 2, 2011, Clanton paid $30,000 in legal fees to defend the patent protection purchased on July 1, 2011.
Recorded the appropriate amortization for the intangible assets for 2011.
Clanton Company includes an asset in its ledger recorded when Clanton purchased a computer service business at a price in excess of the fair value of the assets of the company in the amount of $400,000. At December 31, 2011, $100,000 of this asset has become impaired.
Record each of the transactions above in the general journal.
If an amount box does not require an entry, leave it blank or enter "0".
Jan. 3
Jan. 10
July 1
July 2
Dec. 31 copyright
Dec. 31 patent
Dec. 31 goodwill
HideRecord each of the transactions above in the general journal.
If an amount box does not require an entry, leave it blank or enter "0".
Jan. 3
Jan. 10
July 1
July 2
Dec. 31 copyright
Dec. 31 patent
Dec. 31 goodwill
Explanation / Answer
January 3, 2011 Copyright 2,50,000 Cash 2,50,000 January 10, 2011 Trademark 7,00,000 Cash 7,00,000 July 1, 2011 Patent 80,000 Cash 80,000 July 2, 2011 Patent 30,000 Cash 30,000 Dec-31 Amortization - Copyright 10,000 Copyright(250000/25) 10,000 Dec-31 Amortization - Patent 10,000 Patent (80000+30000)/10 10,000 Dec-31 Loss from Impaired Goodwill 1,00,000 Goodwill 1,00,000 11,80,000 11,80,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.