Exercise 9-12 On January 1, 2017, Blossom Company had a balance of $388,000 of g

Question

Exercise 9-12 On January 1, 2017, Blossom Company had a balance of $388,000 of goodwill on its balance goodwill had an indefinite life. During 2017, the company had the following additional transactions. Jan. 2 Purchased a patent (5-year life) $284,550. July 1 Acquired a 9-year franchise; expiration date July 1, 2,026, $626,400. Sept. 1 Research and development costs $182,500. r. The e necessary entries to record the transactions related to intang bles. All costs incurred were for cash. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no No Entry" for the account titles and enter O for the amounts.J Date Account Titles and Explanation Debit Credit 1/2/17 Patents 284,550 Cash !",sso //17Franchise 5626/600 Cash $626/400 9/3/27

Explanation / Answer

a Date Account Titles and Explanation Debit Credit 1/12/17 Patents $            284,550 Cash $        284,550 7/1/17 Franchise $            625,400 Cash $        625,400 9/1/17 Research and Development Expense $            182,500 Cash $        182,500 b Account Titles and Explanation Debit Credit Amortization Expense $              91,654 Franchise (625400/9)÷2 $          34,744 Patents (284550/5) $          56,910 c Patent $                                                          227,640 (284550-56910) Franchise $                                                          590,656 (625400-34744)

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