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The general journal of Kevin Berry Industries included the following entries relating to various expenditures during 20X5. Review this information and prepare corresponding entries to record any necessary straight-line amortization or other impairment for the year ending December 31. GENERAL JOURNAL Date Accounts Debit Credit 01-Jan Patent 30,000 Cash 30,000 Acquired a patent from an inventor. The patent has a 15-year remaining legal life, but it is expected that Berry will utilize the patent for only 5 years. 15-May Research Expense 12,000 Cash 12,000 Incurred costs in research and development activity. It is possible these costs will result in new product with a 48-month life. 01-Sep Inventory 25,000 Building 75,000 Goodwill 50,000 Cash 150,000 To record purchase of business, expected to be operated successfully for an indefinite number of future years. 20-Dec Copyright 10,000 Cash 10,000 Purchased copyright to a video production, but concluded that it was worthiess by year's end.

The general journal of Kevin Berry Industries included the following entries relating to various expenditures during 20X5. Review this information and prepare corresponding entries to record any necessary straight-line amortization or other impairment for the year ending December 31. GENERAL JOURNAL Date Accounts Debit Credit 01-Jan Patent 30,000 Cash 30,000 Acquired a patent from an inventor. The patent has a 15-year remaining legal life, but it is expected that Berry will utilize the patent for only 5 years. 15-May Research Expense 12,000 Cash 12,000 Incurred costs in research and development activity. It is possible these costs will result in new product with a 48-month life. 01-Sep Inventory 25,000 Building 75,000 Goodwill 50,000 Cash 150,000 To record purchase of business, expected to be operated successfully for an indefinite number of future years. 20-Dec Copyright 10,000 Cash 10,000 Purchased copyright to a video production, but concluded that it was worthiess by year's end.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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GENERAL JOURNAL Date Accounts Debit Credit 31-Dec 31-Dec
Transcribed Image Text:GENERAL JOURNAL Date Accounts Debit Credit 31-Dec 31-Dec
The general journal of Kevin Berry Industries included the following entries relating to various expenditures during 20X5. Review this information and prepare corresponding entries to record any necessary straight-line amortization or other impairment for the year ending December 31. GENERAL JOURNAL Date Accounts Debit Credit 01-Jan Patent 30,000 Cash 30,000 Acquired a patent from an inventor. The patent has a 15-year remaining legal life, but it is expected that Berry will utilize the patent for only 5 years. 15-May Research Expense 12,000 Cash 12,000 Incurred costs in research and development activity. It is possible these costs will result in new product with a 48-month life. 01-Sep Inventory 25,000 Building 75,000 Goodwill 50,000 Cash 150,000 To record purchase of business, expected to be operated successfully for an indefinite number of future years. 20-Dec Copyright 10,000 Cash 10,000 Purchased copyright to a video production, but concluded that it was worthless by year's end.
Transcribed Image Text:The general journal of Kevin Berry Industries included the following entries relating to various expenditures during 20X5. Review this information and prepare corresponding entries to record any necessary straight-line amortization or other impairment for the year ending December 31. GENERAL JOURNAL Date Accounts Debit Credit 01-Jan Patent 30,000 Cash 30,000 Acquired a patent from an inventor. The patent has a 15-year remaining legal life, but it is expected that Berry will utilize the patent for only 5 years. 15-May Research Expense 12,000 Cash 12,000 Incurred costs in research and development activity. It is possible these costs will result in new product with a 48-month life. 01-Sep Inventory 25,000 Building 75,000 Goodwill 50,000 Cash 150,000 To record purchase of business, expected to be operated successfully for an indefinite number of future years. 20-Dec Copyright 10,000 Cash 10,000 Purchased copyright to a video production, but concluded that it was worthless by year's end.
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