Swifty Company, organized in 2020, has the following transactions related to intangible assets. 1/2/22 Purchased patent (5-year life) $385,000 4/1/22 Purchased a small compaly and as a result recorded goodwill. (indefinite life) 360,000 7/1/22 Acquired 12-year franchise; expiration date 7/1/2032 456,000 9/1/22 Incurred research and development costs 194,000 Prepare the necessary entries to record these intangibles (all costs incurred were for cash) and calculate ending balances as at 12/31/22.
Swifty Company, organized in 2020, has the following transactions related to intangible assets. 1/2/22 Purchased patent (5-year life) $385,000 4/1/22 Purchased a small compaly and as a result recorded goodwill. (indefinite life) 360,000 7/1/22 Acquired 12-year franchise; expiration date 7/1/2032 456,000 9/1/22 Incurred research and development costs 194,000 Prepare the necessary entries to record these intangibles (all costs incurred were for cash) and calculate ending balances as at 12/31/22.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter2: Analyzing Transactions
Section: Chapter Questions
Problem 16E: The accounts in the ledger of Hickory Furniture Company as of December 31, 2019, are listed in...
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Swifty Company, organized in 2020, has the following transactions related to intangible assets.
1/2/22 | Purchased patent (5-year life) | $385,000 | ||
4/1/22 | Purchased a small compaly and as a result recorded |
360,000 | ||
7/1/22 | Acquired 12-year franchise; expiration date 7/1/2032 | 456,000 | ||
9/1/22 | Incurred research and development costs | 194,000 |
Prepare the necessary entries to record these intangibles (all costs incurred were for cash) and calculate ending balances as at 12/31/22.
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