During 2016, Martinez Corporation spent $155,520 in research and development costs. As a result, a new product called the New AgePiano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legalcosts of $28,080 related to the patent were incurred as of October 1, 2016.(a)Your answer is correct.Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for theamounts.)Date Account Titles and ExplanationDebitCredit2016Research and Development Expense155520Cash155520(To record research and development expenses)2016Patents28080Cash28080(To record legal expenses) (b)On June 1, 2018, Martinez spent $8,280 to successfully prosecute a patent infringement suit. As a result, the estimate of usefullife was extended to 12 years from June 1, 2018. Prepare all journal entries required in 2018 and 2019. (Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter O for the amounts.)Date Account Titles and ExplanationDebitCredit2018(To record patents)2018(To record amortization expense)2019e Textbook and Media

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Description: During 2016, Martinez Corporation spent $155,520 in research and development costs. As a result, a new product called the New AgePiano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10

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On June 1, 2018, Martinez spent $8,280 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from. June 1, 2018. Prepare all journal entries required in 2018 and 2019. (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.) Date Account Titles and Explanation Debit Credit 2018 (To record patents) 2018 (To record amortization expense) 2019

On June 1, 2018, Martinez spent $8,280 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from. June 1, 2018. Prepare all journal entries required in 2018 and 2019. (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.) Date Account Titles and Explanation Debit Credit 2018 (To record patents) 2018 (To record amortization expense) 2019

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.13MCE

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