In 2024, Bratten Fitness Company made the following cash purchases: The exclusive right to manufacture and sell the X-Core workout machine from Symmetry Corporation for $201,000. Symmetry created the unique design for the equipment. Bratten also paid an additional $10,500 in legal and filing fees to attorneys to complete the transaction. An initial fee of $250,000 for a three-year agreement with Silver’s Gym to use its name for a new facility in the local area. Silver’s Gym has locations throughout the country. Bratten is required to pay an additional fee of $5,100 for each month it operates under the Silver’s Gym name, with payments beginning in March of 2024. Bratten also purchased $401,000 of exercise equipment to be placed in the new facility. The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $20,000. The book includes healthy recipes, recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its new facility, as well as make it available online. Required: Prepare a summary journal entry to record expenditures related to initial acquisitions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
In 2024, Bratten Fitness Company made the following cash purchases: The exclusive right to manufacture and sell the X-Core workout machine from Symmetry Corporation for $201,000. Symmetry created the unique design for the equipment. Bratten also paid an additional $10,500 in legal and filing fees to attorneys to complete the transaction. An initial fee of $250,000 for a three-year agreement with Silver’s Gym to use its name for a new facility in the local area. Silver’s Gym has locations throughout the country. Bratten is required to pay an additional fee of $5,100 for each month it operates under the Silver’s Gym name, with payments beginning in March of 2024. Bratten also purchased $401,000 of exercise equipment to be placed in the new facility. The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $20,000. The book includes healthy recipes, recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its new facility, as well as make it available online. Required: Prepare a summary journal entry to record expenditures related to initial acquisitions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
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Question
In 2024, Bratten Fitness Company made the following cash purchases:
- The exclusive right to manufacture and sell the X-Core workout machine from Symmetry Corporation for $201,000. Symmetry created the unique design for the equipment. Bratten also paid an additional $10,500 in legal and filing fees to attorneys to complete the transaction.
- An initial fee of $250,000 for a three-year agreement with Silver’s Gym to use its name for a new facility in the local area. Silver’s Gym has locations throughout the country. Bratten is required to pay an additional fee of $5,100 for each month it operates under the Silver’s Gym name, with payments beginning in March of 2024. Bratten also purchased $401,000 of exercise equipment to be placed in the new facility.
- The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $20,000. The book includes healthy recipes, recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its new facility, as well as make it available online.
Required:
Prepare a summary
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