During the current year, Cartwright Corporation’s accountant recorded numerous transactions in an account entitled Intangible Assets, as follows:
Required:
Prepare adjusting journal entries to eliminate the Intangible Assets account and correctly record all the items, including appropriate amortization adjustments. Cartwright amortizes patents over 10 years.
Prepare necessary adjusting journal entries of Company C.
Intangible assets: These are the long-term assets which are not physical in nature, but possess value. The intangible assets would be amortized over their definite useful life or limited useful life, and those with indefinite or unlimited lives are not amortized.
Prepare necessary adjusting journal entries of Company C as follows:
Date | Account Title & Explanation | Debit ($) | Credit($) |
December 31 | Start-up costs | 17,500 | Â |
 | Intangible assets |  | 17,500 |
 | (To record the incorporation fees (start-up costs) paid during the year) |  |  |
December 31 | Start-up costs | 7,500 | Â |
 | Intangible assets |  | 7,500 |
 | (To record the legal fees (start-up costs) paid during the year) |  |  |
December 31 | Advertising expense | 15,000 | Â |
 | Intangible assets |  |  15,000 |
 | (To record the advertising expense incurred) |  |  |
December 31 | Land | 15,000 | Â |
 | Building | 20,000 |  |
 | Intangible assets |  |  35,000 |
 | (To record the land and building acquired for the research and development activities) |  |  |
December 31 | Research and development expense | 15,000 | Â |
 | Intangible assets |  |  15,000 |
 | (To record the materials purchased for research and development activities) |  |  |
December 31 | Patent | 10,000 | Â |
 | Intangible assets |  |  10,000 |
 | (To record the patent expense paid during the year) |  |  |
December 31 | Research and development expense | 12,000 | Â |
 | Intangible assets |  |  12,000 |
 | (To record the machine purchased for research and development activities) |  |  |
December 31 | Research and development expense | 30,000 | Â |
 | Intangible assets |  |  30,000 |
 | (To record the salaries paid for the research and development activities) |  |  |
December 31 | Research and develo... |
Financial Accounting
Corporate Financial Accounting
Managerial Accounting: The Cornerstone of Business Decision-Making
Accounting Information Systems
College Accounting, Chapters 1-27
Financial & Managerial Accounting
Financial And Managerial Accounting
MKTG 12:STUDENT ED.-TEXT
Accounting Information Systems
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Principles of Macroeconomics (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Essentials of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Contemporary Marketing
Foundations of Business (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Management, Loose-Leaf Version
College Accounting (Book Only): A Career Approach
Financial & Managerial Accounting
Accounting (Text Only)
Financial Accounting
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Exploring Economics
Statistics for Business & Economics, Revised (MindTap Course List)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting (Book Only): A Career Approach
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Survey of Accounting (Accounting I)
Corporate Financial Accounting
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Practical Management Science
Macroeconomics
Economics For Today
Economics (MindTap Course List)
Microeconomics
Cornerstones of Cost Management (Cornerstones Series)
Purchasing and Supply Chain Management