Required: Prepare the journal entry to record the amortization expense on Dec 31, 2020
Q: 16 On December 31, 2019, Blackpink Incorporated purchase a trademark. Data pertinent to the…
A: Intangible Assets: An intangible asset is an identifiable non-monetary asset without physical…
Q: On January 1, 2020, Tom Co (A seller-lessee) sells a building to MacCo (an unrelated buyerlessor)…
A: This is a case if sale and lease back and will be covered under IFRS 15
Q: Zurich Manufacturing Company acquired three patents in August 2019. The patents have different…
A: Amortization is the reduction in the valuation of any Intangible Asset of the company. This…
Q: Wildhorse Corporation purchased a patent for $ 148500 on September 1, 2019. It had a useful life of…
A: Formula: Amortization expense = ( Asset cost - Salvage value ) / Useful life
Q: Yellow Company acquired a trademark for P10,000,000 from Orange Company on January 5, 2021. The…
A: The intangible assets are used in the business to generate revenues and these assets have a life of…
Q: Colgate Co. bought a trademark from Crest Corp. on May 1, 2019 for P300,000. Its unamortized cost on…
A: The calculation of amount of trademark that should be reported in the Statement of Financial…
Q: On July 1, 2022, Cullumber Company purchased the copyright to Bramble Corp. for $310000. It is…
A: Annual amortization of Copyright = (Cost of copyright - residual value) / Life of copyright =…
Q: ou noted the following items relative to the company's intangibles assets of Pete Corporation at…
A: Carrying amount of Franchisee:
Q: Steel Magnolia Incorporated purchased a trademark 7 years ago for $275,000. Steel Magnolia believed…
A: An impairment loss seems to be the amount whereby an asset's or cash-generating unit's carrying…
Q: On May 1, 2019, Al-Quds Co. purchased a trademark with a cost of $120000. The trademark is…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: Trademarks were previously acquired for $200,000 on January 1, 2018. Estimated useful life at the…
A: Given: General Products successfully defended these trademarks at a legal cost of $45,000. The new…
Q: On July 1, 2021, ABC Co. purchased a franchise for $78,000. The franchise has a remaining legal and…
A: Introduction:- Journal entry is the first stage of accounting process. which is used to record…
Q: Sunland Co. bought a patent from Carla Vista Corp. on January 1, 2021, for $918000. An independent…
A: Intangible assets: These are long-term assets having no physical existence. However, the benefits…
Q: On June 2, 2021, Tabitha Co. purchased a franchise for $589,000 by signing a five-year contract. At…
A: Cost of franchise = $589000 Contract period = 5 years Amortization per year = $589000/5 =$117800
Q: On January 1, 2018, Laica Company purchased a patent from an original patentee for P2,400,000. The…
A: Intangible Assets Example for Intangible assets are goodwill, patent, Trademark, copyright etc.…
Q: On July 1, 2017, Sunland Company purchased the copyright to Culver Corporation for $190000. It is…
A: Compute the annual amortization expense.
Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…
A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…
Q: A. Muharraq Industrial Co. purchased a Tradename for $ 240,000 on July 1, 2021. The Trademname is…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: On January 1, 2021, ABC Company purchased P600,000, a trademark with an estimated useful life of 16…
A: January 1, 2021 : (1) Purchase Cost of Trademark = P 600,000 (2) Estimated Useful Life = 16 years…
Q: On September 30, 2019, Leeds LTD. acquired a patent in conjunction with the purchase of another…
A: 1) Calculation of Amortization for the patent for 2019 and 2020: Amortization = ( Total patent…
Q: Tones Industries has the following patents on its December 31, 2019, balance sheet. Patent Item…
A: a. Compute the total carrying amount of Tones' patents on its December 31, 2019, balance sheet.
Q: On September 1, 2019, Jordan, Inc. acquired a patent for $600,000. The patent has 16 years remaining…
A: Date Account Titles and Explanation Debit Credit Sep'1 Patent $6,00,000 Cash…
Q: January 1, 2020, Cecilia Company purchased a patent from an original patentee for P2,400,000. The…
A: If a competing patent is acquired to protect an original patent. The cost of the new patent and the…
Q: the patent is 8 years. During the year 2021, the company determined that the economic life of the…
A: The amortization expense is charged on intangible assets of the business.
Q: On January 1, 2021, ABC Company purchased P600,000, a trademark with an estimated useful life of 16…
A: As per IAS 38, any subsequent expenditure related to the intangible asset that has increased its…
Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…
A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…
Q: Celine Dion Corporation purchases a patent from Salmon Company on January 1, 2019, for $55,000. The…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: PEI Ltd. purchased a copyright on a new book series about the history of the Great Lakes in Ontario…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: Prepare all necessary journal entries for 2020, 2021, and 2022 related to each of the following…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: In Colgate's December 31, 2019, Financial Position what amount should the trademark be reported?
A: Note: Assumed that Legal life of Trademark is 10 Years. Given: Cost of Trademark P300,000 Reporting…
Q: On January 3, 2018, Sweet company bought a patent for P540,000. The estimated useful life of the…
A: Amortization of the Patent: Amortization of the Patent is the tactic in which the cost of the patent…
Q: Hepburn Company bought a copyright for $120,000 on January 1, 2018, at which time the copyright had…
A: In straight line depreciation we assume there is uniform annual depreciation of assets and it is…
Q: On January 1, 2019, the account balances of Acelle Company showed patent cost of P1,920,000 and…
A: Intangible assets: - Intangible assets are those assets of the company which cannot be touched or…
Q: Sage Hill Industries has the following patents on its December 31, 2019, balance sheet. Patent…
A: A) Calculate the total carrying amount of patent on December 31, 2019.
Q: In early January 2019, Outkast Corporation applied for a trade name, incurring legal costs of…
A:
Q: ylor Swift Corporation purchases a patent from Salmon Company on January 1, 2020, for $54,000. The…
A: Patent is a right that is exclusively granted by the Government to an individual or firm to process…
Q: Marigold Company purchases a patent for $504,000 on January 2, 2022. Its estimated useful life is 18…
A: Amortization expense = Cost of patent/Useful life
Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…
A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…
Q: Crane Company purchased a patent on January 1, 2020 for $568000. The patent had a remaining useful…
A: Amortization: Amortization can be defined as the process in which the cost of the intangible assets…
Q: e of th
A: Given: Jordan Company for P120,000 Trademark totaling P30,000
Q: R Company registered a patent on January 1, 2015. P Company purchased the patent from R Company for…
A: Note: As per relevant accounting standard, Legal life of patent is 20 years. It means patent will be…
Q: On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued…
A: Solution:- computation of the increase or (decrease) of the Goodwill in December 31, 2022 as…
Q: In early January 2020, Sunland Corporation applied for and received approval for a trade name,…
A: Given, Total Legal fee paid in Early January 2020: $ 44800: Applied and received approval for…
Q: On January 2, 2021, Harlan Company purchased a patent for $48,000. The patent has an estimated…
A: A patent appears to be a legal privilege awarded by a sovereign authority to an inventor. In…
Q: Sawi Ak Co. acquires copyright from authors, paying advance royalties in some cases and in others,…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: On October 1, 2019, Priscilla purchased a business. Of the purchase price, $60,000 is allocated to a…
A: Formula: Total amortization deduction = Amortization for patent + Amortization for Goodwill
Q: On May 1, 2019, Al-Quds Co, purchased a trademark with a cost of $120000, The trademark is…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: ompany acquired a trademark for P10 million from Bangkok Trading on January 2, 2022. The trademark…
A: Trademarks are acquired at some cost but these are to be amortized in the accounting over the life…
Q: Sami company acquired a patent on October 1, 2020. Sami paid cash of $55,000 to the seller.…
A: Patents is a form of intangible asset which needs to be amortised over the useful life of the…
A. Manam Co purchased a Trademark for $ 160,000 on October 1, 2020. The Trademark is legally used for 10-year period.
Required: Prepare the
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- Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.Steel Magnolia Incorporated purchased a trademark 7 years ago for 275,000. Steel Magnolia believed the trade-mark would have an indefinite life. At the end of 2020, the corporation believes the fair value of the trademark is 189,000. Record the impairment loss for Steel Magnolia.Petes Petroleum, Inc., an SEC registrant with a calendar year-end, is in the business of constructing and operating offs] lore oil platforms. Petes Petroleum is required legally to dismantle and remove the platforms at the end of their useful lives, which is estimated to be 10 years. On January 1, 2019, Pete constructed and began operating an offshore oil platform off the coast of Brazil. The total capitalized cost to construct the platform was 3,700,000. In addition, while the future cost of dismantling the oil platform is difficult to estimate, Pete believes there is a 40% chance that the future cost will be 1,425,000, a 40% chance it will be 1,650,000, and a 20% chance that it will cost 2,125,000. The appropriate discount rate is 12%, and Pete uses the straight-line method of depreciation. Required: 1. Prepare the journal entries that Pete should record in 2019 related to the oil platform. 2. Prepare an amortization schedule for the asset retirement obligation. 3. Next Level Prepare a table showing the effect of accounting for the asset retirement obligation on assets, liabilities, shareholders equity, and net income relative to accounting for the associated costs at the end of the assets service life when the expenditure is made.
- During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows: Required: 1. Compute the gross profit or loss recognized in 2019 and 2020. 2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.
