E12-6 Rolanda Marshall Company, organized in 2013, has set up a single account
for all intangible assets. The following summary discloses the debit entries
that have been recorded during 2014.
1/2/14 Purchased
patent (8-year life) $350,000
4/1/14 Purchase
goodwill (indefinite life) 360,000
7/1/14 Purchased
franchise with 10-year life; expiration date 7/1/24 450,000
8/1/14 Payment
of copyright (5-year life) 156,000
9/1/14 Research
and development costs 215,000
$1,531,000
Prepare the
necessary entries to clear the Intangible Assets account and to set up separate
accounts for distinct types of intangibles.
|
Account Titles and Explanation
|
Debit
|
Credit
|
Make the
entries as of December 31, 2014, recording any necessary amortization.
|
Account Titles and Explanation
|
Debit
|
Credit
|
Reflect all
balances accurately as of December 31, 2014. (Use straight-line amortization.)
SOLUTION PREVIEW
|
Patents
|
350,000
|
|
|
Goodwill
|
360,000
|
|
File name: E12-6 Rolanda Marshall.doc File
type: doc PRICE: $5
