Bramble Company, organized in 2020, has the following transactions related to intangible assets. 1/2/20 Purchased patent (6-year life) $474,000 4/1/20 Goodwill purchased (indefinite life) 360,000 7/1/20 14-year franchise 588,000 9/1/20 Research and development costs 166,000 (a1) Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2020, recording any necessary amortization. (Credit account titles are automatically ind
Bramble Company, organized in 2020, has the following transactions related to intangible assets. 1/2/20 Purchased patent (6-year life) $474,000 4/1/20 Goodwill purchased (indefinite life) 360,000 7/1/20 14-year franchise 588,000 9/1/20 Research and development costs 166,000 (a1) Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2020, recording any necessary amortization. (Credit account titles are automatically ind
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 62E
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Bramble Company, organized in 2020, has the following transactions related to intangible assets.
| 1/2/20 | Purchased patent (6-year life) | $474,000 | ||
| 4/1/20 | 360,000 | |||
| 7/1/20 | 14-year franchise | 588,000 | ||
| 9/1/20 | Research and development costs | 166,000 |
(a1)
Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2020, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
| date | Account title and explanation | debit | CREDIT |
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