Sheridan Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) 4/1/20 Purchase goodwill (indefinite life) 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 8/1/20 Payment of copyright (5-year life) 9/1/20 Research and development costs (a1) $348,800 346,000 426,000 151,200 216,000 $1,488,000 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 O for the amounts.) Account Titles and Explanation Debit Credit
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- Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.The following intangible assets were purchased by Goldstein Corporation: A. A patent with a remaining legal life of twelve years is bought, and Goldstein expects to be able to use it for seven years. B. A copyright with a remaining life of thirty years is purchased, and Goldstein expects to be able to use it for ten years. For each of these situations, determine the useful life over which Goldstein will amortize the intangible assets.Marshall Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) $ 350,000 4/1/20 Purchase goodwill (indefinite life) 360,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 450,000 8/1/20 Payment of copyright (5-year life) 156,000 9/1/20 Research and development costs 215,000 $1,531,000 Instructions Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2020, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.)
- Sheridan Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) $348,800 4/1/20 Purchase goodwill (indefinite life) 346,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 426,000 8/1/20 Payment of copyright (5-year life) 151,200 9/1/20 Research and development costs 216,000 $1,488,000 1). Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. 2). Make the entry as of December 31, 2020, recording any necessary amortization 3). Make the entry as of December 31, 2020, recording any necessary amortization Use straight-line amortizationCrane Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (9-year life) $407,700 4/1/20 Purchase goodwill (indefinite life) 363,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 443,000 8/1/20 Payment of copyright (5-year life) 171,600 9/1/20 Research and development costs 233,000 $1,618,300 (a1) 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 O for the amounts.) Account Titles and Explanation Debit Credit to searchCarla Vista Company, organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025. 1/2/25 Purchased patent (9-year life) Purchase goodwill (indefinite life) Purchased franchise with 10-year life; expiration date 7/1/35 4/1/25 7/1/25 8/1/25 Payment of copyright (5-year life) 9/1/25 Research and development costs $394,200 348,000 428,000 153,600 218,000 $1,541,800
- Reichenbach Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. Intangible Assets 7/1/20 8-year franchise; expiration date 6/30/25 $ 48,000 10/1/20 Advance payment on laboratory space (2-year lease) 24,000 12/31/20 Net loss for 2020 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2020) 16,000 1/2/21 Patent purchased (10-year life) 84,000 3/1/21 Cost of developing a secret formula (indefinite life) 75,000 4/1/21 Goodwill purchased (indefinite life) 278,400 6/1/21 Legal fee for successful defense of patent purchased above 12,650 9/1/21 Research and development costs 160,000 Instructions Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2021,…(Recording and Amortization of Intangibles) Parrish Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020: 1/2/20 Purchased patent (8-year life) $ 625,000 4/1/20 Purchased goodwill (indefinite life) 540,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 675,000 8/1/20 Payment for copyright (5-year life) 246,000 9/1/20 Research and development costs 342,500 $2,428,500 Instructions Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2020, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.)Wildhorse Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. Intangible Assets 7/1/20 8-year franchise; expiration date 6/30/28 $52,800 10/1/20 Advance payment on laboratory space (2-year lease) 24,000 12/31/20 Net loss for 2020 including state incorporation fee, $1,500, and related legal fees of organizing, $5,500 (all fees incurred in 2020) 12,400 1/2/21 Patent purchased (10-year life) 83,800 3/1/21 Cost of developing a secret formula (indefinite life) 88,000 4/1/21 Goodwill purchased (indefinite life) 274,600 6/1/21 Legal fee for successful defense of patent purchased above 13,685 9/1/21 Research and development costs 173,000 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December…
- Wildhorse Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. Intangible Assets 7/1/20 8-year franchise; expiration date 6/30/28 $52,800 10/1/20 Advance payment on laboratory space (2-year lease) 24,000 12/31/20 Net loss for 2020 including state incorporation fee, $1,500, and related legal fees of organizing, $5,500 (all fees incurred in 2020) 12,400 1/2/21 Patent purchased (10-year life) 83,800 3/1/21 Cost of developing a secret formula (indefinite life) 88,000 4/1/21 Goodwill purchased (indefinite life) 274,600 6/1/21 Legal fee for successful defense of patent purchased above 13,685 9/1/21 Research and development costs 173,000 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December…Pharoah Limited organized late in 2019 and set up a single account for all intangible assets. The following summary shows the entries in 2020 (all debits) that have been recorded in Intangible Assets since then: Jan. 2 3 1 Apr. 1 July 1 1 Mar. Purchased patent (8-year life) Costs to search for new ways to apply patent that was purchased on Jan. 2 Purchased goodwill (indefinite life) Purchased franchise with 10-year life; expiration date July 1, 2030 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 Aug. 1 Payment for copyright (5-year life) 1 Purchased trademark (3-year life) 1 Purchased customer list (2-year life) Sept 1 Research costs $338,000 21,000 307,000 259,000 33,000 142,800 14,400 9,600 236,000 $1,360,8 00 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles.Carla Vista Co., organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025 and 2026, C 7/1/25 10/1/25 12/31/25 1/2/26 3/1/26 4/1/26 6/1/26 9/1/26 Intangible Assets 8-year franchise; expiration date 6/30/33 Advance payment on laboratory space (2-year lease) Net loss for 2025 including state incorporation fee, $3,000, and related legal fees of organizing. $7,000 (all fees incurred in 2025) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs Account Titles and Explanation (To clear the Intangible Assets) (To record current amount for Franchises) (To record current amount for Rents) Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the…