FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Impaired goodwill and amortization of patent
**Impaired Goodwill and Amortization of Patent** On April 1, a patent with an estimated useful economic life of 12 years was acquired for $72,000. In addition, on December 31, it was estimated that goodwill of $35,500 was impaired. ### Instructions **a. Record the acquisition of the patent. If an amount box does not require an entry, leave it blank.** - **Date: April 1** - **Account Titles:** - Debit: - Credit: **b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank.** - **Date: December 31** - **Account Titles:** - Debit: - Credit: **c. Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank.** - **Date: December 31** - **Account Titles:** - Debit: - Credit: ### Notes: - The steps include recording the acquisition of the patent, adjusting for amortization, and recording the impairment of goodwill. - Make sure to enter the correct account titles and amounts based on the given information. - No graphs or diagrams are included in this part of the task.
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Transcribed Image Text:**Impaired Goodwill and Amortization of Patent** On April 1, a patent with an estimated useful economic life of 12 years was acquired for $72,000. In addition, on December 31, it was estimated that goodwill of $35,500 was impaired. ### Instructions **a. Record the acquisition of the patent. If an amount box does not require an entry, leave it blank.** - **Date: April 1** - **Account Titles:** - Debit: - Credit: **b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank.** - **Date: December 31** - **Account Titles:** - Debit: - Credit: **c. Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank.** - **Date: December 31** - **Account Titles:** - Debit: - Credit: ### Notes: - The steps include recording the acquisition of the patent, adjusting for amortization, and recording the impairment of goodwill. - Make sure to enter the correct account titles and amounts based on the given information. - No graphs or diagrams are included in this part of the task.
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