Ivanhoe Company, organized in 2016, has set up a single account for all intangib
ID: 2588827 • Letter: I
Question
Ivanhoe Company, organized in 2016, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2017 1/2/17 4/1/17 7/1/17 8/1/17 9/1/17 Purchased patent (7-year life) Purchase goodwill (indefinite life) Purchased franchise with 10-year life; expiration date 7/1/27 Payment of copyright (5-year life) Research and development costs $365,400 353,400 420,000 120,000 235,000 $1,493,800 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit CreditExplanation / Answer
JOURNAL ENTRIES FOR INTANGIBLE ASSETS:
JOURNAL ENTRY AS OF DECEMBER 31, 2017:
BALANCES AS ON DECEMBER 31, 2017:
DATE ACCOUNT TITLES AND EXPLANATIONS DEBIT CREDIT 1/2/17 Patent 365,400 Cash 365,400 4/1/17 Goodwill 353,400 Cash 353,400 7/1/17 Franchise 420,000 Cash 420,000 8/1/17 Copyright 120,000 Cash 120,000 9/1/17 Research and Development Expense 235,000 Cash 235,000 *-------------------*-------------*---------------*----------*Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.