Make the entry as of December 31, 2020, recording any necessary amortization. (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 0 for the amounts.)Account Titles and ExplanationDebitCredit Exercise 12-06Pharoah 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 2020.1/2/20Purchased patent (7-year life)$304,5004/1/20Purchase goodwill (indefinite life)345,0007/1/20Purchased franchise with 10-year life; expiration date 7/1/30425,0008/1/20Payment of copyright (5-year life)Research and development costs150,0009/1/20215,000$1,439,500X Your answer is incorrect. Try again.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 0 for the amounts.)

Intangible assets would be amortized over its remaining life proportionately.

Pharoah 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. Purchased patent (7-year life) Purchase goodwill (indefinite life) 1/2/20 2304.500 4/1/20 345.000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 8/1/20 Payment of copyright (5-year ife) 425,000 150,000 215.000 $1,419.500 9/1/20 Research and development costs O Your answer is incorrect. Try again. Prepare the necessary entry to cear 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.)

Pharoah 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. Purchased patent (7-year life) Purchase goodwill (indefinite life) 1/2/20 2304.500 4/1/20 345.000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 8/1/20 Payment of copyright (5-year ife) 425,000 150,000 215.000 $1,419.500 9/1/20 Research and development costs O Your answer is incorrect. Try again. Prepare the necessary entry to cear 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.)

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 37BE

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