H1.Account Acquisition and Amortization of Intangible AssetsTLM Technologies had these transactions related to intangible assets during the year.Jan. 2 Purchased a patent from Luna Industries for $200,000. The remaining legal life of the patent is15 years, and TLM expects the patent to be useful for 8 years.Jan. 5 Paid legal fees in a successful legal defense of the patent of $80,000.June 29 Registered a trademark with the federal government. Registration costs were $12,100. TLMexpects to use the trademark indefinitely.Sept. 2 Paid research and development costs of $500,000.Required:1. Prepare the journal entries necessary to record the transactions. If no entry is required, select "No entry required" and leave the amount boxes blank. If an amountbox does not require an entry, leave it blank.Jan. 2Jan. 5June 29Sept. 2 2. Prepare the entries necessary to record amortization expense for the intangible assets. If no entry is required, select "No entry required" and leave the amount boxesblank. If an amount box does not require an entry, leave it blank.Dec. 31Dec. 313. What is the balance of the intangible assets at the end of the year?PatentTrademark

The intangible asset is a non-current asset or a non-monetary fixed asset which does not have any…

Required: 1. Prepare the journal entries necessary to record the transactions. If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

Required: 1. Prepare the journal entries necessary to record the transactions. If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

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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Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

H1.

Account

Acquisition and Amortization of Intangible Assets
TLM Technologies had these transactions related to intangible assets during the year.
Jan. 2 Purchased a patent from Luna Industries for $200,000. The remaining legal life of the patent is
15 years, and TLM expects the patent to be useful for 8 years.
Jan. 5 Paid legal fees in a successful legal defense of the patent of $80,000.
June 29 Registered a trademark with the federal government. Registration costs were $12,100. TLM
expects to use the trademark indefinitely.
Sept. 2 Paid research and development costs of $500,000.
Required:
1. Prepare the journal entries necessary to record the transactions. If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount
box does not require an entry, leave it blank.
Jan. 2
Jan. 5
June 29
Sept. 2

2. Prepare the entries necessary to record amortization expense for the intangible assets. If no entry is required, select "No entry required" and leave the amount boxes
blank. If an amount box does not require an entry, leave it blank.
Dec. 31
Dec. 31
3. What is the balance of the intangible assets at the end of the year?
Patent
Trademark

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