menu
bartleby
search
close search
Hit Return to see all results
Subscribe
Sign in

Business
AccountingIntermediate Accounting: Reporting And Analysis3rd Edition

close solutoin list
Chapter 12, Problem 5RE
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
Problem 1GI
Problem 2GI
Problem 3GI
Problem 4GI
Problem 5GI
Problem 6GI
Problem 7GI
Problem 8GI
Problem 9GI
Problem 10GI
Problem 11GI
Problem 12GI
Problem 13GI
Problem 14GI
Problem 15GI
Problem 16GI
Problem 17GI
Problem 18GI
Problem 19GI
Problem 20GI
Problem 1MC
Problem 2MC
Problem 3MC
Problem 4MC
Problem 5MC
Problem 6MC
Problem 7MC
Problem 8MC
Problem 9MC
Problem 10MC
Problem 1RE
Problem 2RE
Problem 3RE
Problem 4RE
Problem 5RE
Problem 6RE
Problem 7RE
Problem 8RE
Problem 9RE
Problem 10RE
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 17E
Problem 18E
Problem 19E
Problem 20E
Problem 1P
Problem 2P
Problem 3P
Problem 4P
Problem 5P
Problem 6P
Problem 7P
Problem 8P
Problem 9P
Problem 10P
Problem 11P
Problem 1C
Problem 2C
Problem 3C
Problem 4C
Problem 5C
Problem 6C
Problem 7C
Problem 8C
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
61 views

Mystic Pizza Company purchased a patent from Prime Pizza Plus on January 1, 2019, for $72,000. The patent has a remaining legal life of 9 years. Prepare the journal entries to record the acquisition and the amortization for 2019, assuming Mystic Pizza amortizes its patents using the straight-line method over the life of the asset.

To determine

Prepare the necessary journal entries for the given transaction.

Explanation

Amortization expense: The expense which reflects the usage of intangible asset by the way of reducing the cost of the asset for the estimated useful definite life, is referred to as amortization expense.

Formula for amortization expense:

Amortization expense=  Cost of intangible asset ×1Useful life

Patent: Patent is a right that is exclusively granted by the Government to an individual or firm to process or design, to make, use or sell its invention for a limited period. It protects the right of the inventor from doing so by any other individual till the granted period expires.

Prepare journal entries for the acquisition of patent for 2019:

DateAccounting Title and ExplanationPost Ref.Debit ($)Credit ($)
January 1, 2019Patent 72,000 
 Cash   72,000
 (To record the purchase of patent)   

Table (1)

  • A Patent is an asset account and it is increased. Therefore, debit patents account with $72,000
  • Cash is an asset account and it is decreased. Therefore, credit cash account with $72,000

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution
arrow_back
Chapter 12,
Problem 4RE
Chapter 12,
Problem 6RE
arrow_forward

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 12 Solutions

Show all chapter solutions add
Ch-12 P-1GICh-12 P-2GICh-12 P-3GICh-12 P-4GICh-12 P-5GICh-12 P-6GICh-12 P-7GICh-12 P-8GICh-12 P-9GICh-12 P-10GI
Ch-12 P-11GICh-12 P-12GICh-12 P-13GICh-12 P-14GICh-12 P-15GICh-12 P-16GICh-12 P-17GICh-12 P-18GICh-12 P-19GICh-12 P-20GICh-12 P-1MCCh-12 P-2MCCh-12 P-3MCCh-12 P-4MCCh-12 P-5MCCh-12 P-6MCCh-12 P-7MCCh-12 P-8MCCh-12 P-9MCCh-12 P-10MCCh-12 P-1RECh-12 P-2RECh-12 P-3RECh-12 P-4RECh-12 P-5RECh-12 P-6RECh-12 P-7RECh-12 P-8RECh-12 P-9RECh-12 P-10RECh-12 P-1ECh-12 P-2ECh-12 P-3ECh-12 P-4ECh-12 P-5ECh-12 P-6ECh-12 P-7ECh-12 P-8ECh-12 P-9ECh-12 P-10ECh-12 P-11ECh-12 P-12ECh-12 P-13ECh-12 P-14ECh-12 P-15ECh-12 P-16ECh-12 P-17ECh-12 P-18ECh-12 P-19ECh-12 P-20ECh-12 P-1PCh-12 P-2PCh-12 P-3PCh-12 P-4PCh-12 P-5PCh-12 P-6PCh-12 P-7PCh-12 P-8PCh-12 P-9PCh-12 P-10PCh-12 P-11PCh-12 P-1CCh-12 P-2CCh-12 P-3CCh-12 P-4CCh-12 P-5CCh-12 P-6CCh-12 P-7CCh-12 P-8C

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Occupancy for a Hospital The Valley Hospital measures the in-patient occupancy of the hospital by determining t...

Financial And Managerial Accounting

Journalize the following transactions, using the direct write-off method of accounting for uncollectible receiv...

Financial Accounting

Can a business earn a gross profit but incur a net loss? Explain.

Financial & Managerial Accounting

Which of the following is not a data analytics security issue for? a. Internet intrusion b. Outsourcing to a se...

Accounting Information Systems

(Appendix 4A) When a job costing 2,000 is finished but not sold, the following journal entry is made:

Managerial Accounting: The Cornerstone of Business Decision-Making

A. How does the rate earned on total assets differ from the rate earned on stockholders' equity? B. Which ratio...

Corporate Financial Accounting

The W-4, which shows total annual earnings and deductions for federal and state income taxes, must be completed...

College Accounting, Chapters 1-27

What is the advantage of using comparative statements for financial analysis rather than statements for a singl...

Accounting

(Evolution of the Household) Determine whether each of the following would increase or decrease the opportunity...

ECON MICRO

(Allocative and Distributive Effects) Why is society worse off under monopoly than under perfect competition, e...

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

Describe an important trade-off you recently faced. Give an example of some action that has both a monetary an...

Essentials of Economics (MindTap Course List)

Describe the four variables of the marketing mix.

Contemporary Marketing

The largest component in the basket of goods and services used to compute the CPI is a. food and beverages. b. ...

Principles of Macroeconomics (MindTap Course List)

To tap into the experience of battle-tested soldiers, the U.S. Army began encouraging personnel from all ranks ...

Management, Loose-Leaf Version

Because there are computer-based documentation products that can draw data flow diagrams and systems flowcharts...

Accounting Information Systems

Refer to Table 1.6. a. What is the average cost for the tablets? b. Compare the average cost of tablets with a ...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Parents, like governments, establish credibility by seeing to it that their “policies” (the rules that they out...

Economics:

Classify each of the following statements as positive or normative. Explain. a. Society faces a short-run trade...

Principles of Microeconomics (MindTap Course List)

Describe four marketing management philosophies

MKTG 12:STUDENT ED.-TEXT

Explain whether each of the following events increases or decreases the money supply. a. The Fed buys bonds in ...

Brief Principles of Macroeconomics (MindTap Course List)

What factors does a householder consider when deciding whether to produce a good or service at home versus buy ...

ECON MACRO

If a cup of coffee costs 2 euros in Paris and 6 in New York and purchasing-power parity holds, what is the exch...

Principles of Economics (MindTap Course List)

Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficien...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

How is organization height related to the span of management?

Foundations of Business (MindTap Course List)

Inter cultural Communication: Negotiating Diversity in Job Interviews. Todays workforce benefits from diversity...

Essentials of Business Communication (MindTap Course List)

What does it mean when it is said that the United States is running a trade deficit? What impact will a trade d...

Fundamentals of Financial Management (MindTap Course List)

The following errors took place in journalizing and posting transactions: a. Insurance of 18,000 paid for the c...

Financial Accounting

You are the bookkeeper at a small merchandising firm. You are comparing the income statements from the last thr...

College Accounting (Book Only): A Career Approach

If an inventor owns more than 50% of an investee, how is the investment treated on the investors financial stat...

Financial & Managerial Accounting

Issuing stock Willow Creek Nursery, with an authorization of 75,000 shares of preferred stock and 200,000 share...

Accounting (Text Only)

Which of the following is not a deduction from total earnings? a. Federal income tax b. Union dues c. 2.5 hours...

College Accounting (Book Only): A Career Approach

JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Shiar Manufacturing had the following transactions during the...

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Looking at the most recent year available, what is the amount of total assets on Starbucks' balance sheet? What...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Four managers (or departments) are shown in Figure 16.1 as reporting to the controller. Setting aside your pers...

Pkg Acc Infor Systems MS VISIO CD

An alternative version of Greshams law is that Bad money drives out good money. Why is it true that, in choosin...

Exploring Economics

If the United States imports more goods from abroad than it exports, foreigners will tend to have a surplus of ...

Fundamentals of Financial Management (MindTap Course List)

The U.S. Department of Energy provides fuel economy information for a variety of motor vehicles. A sample of 10...

Statistics for Business & Economics, Revised (MindTap Course List)

In a supply-and-demand diagram, show how a tax on car buyers of 1,000 per car affects the quantity of cars sold...

Principles of Macroeconomics (MindTap Course List)

Entries for issuing stock On January 22, Zentric Corporation issued for cash 180,000 shares of no-par common st...

Corporate Financial Accounting

As a way of curbing the unemployment rate, California has a shared-work compensation program. Under this progra...

PAYROLL ACCT.,2019 ED.(LL)-TEXT

Utilization rate The East Memorial Hospital measures occupancy using the number of patient beds used during a m...

Survey of Accounting (Accounting I)

A company faces the following demands during the next three weeks: week 1, 2000 units; week 2, 1000 units; week...

Practical Management Science

What is the advantage of the Herfindahl index over the four-and eight-firm concentration ratios? Explain your a...

Microeconomics

In each of the sentences below, choose the correct word in parentheses. Conversation skills and good listening ...

Bcom

Explain what happens under adaptive expectations theory when monetary and fiscal policy-makers use expansionary...

Economics For Today

What is the difference between business cycle macroeconomics and economic growth macroeconomics?

Economics (MindTap Course List)

Madison Company uses the following rule to determine whether direct labor efficiency variances ought to be inve...

Cornerstones of Cost Management (Cornerstones Series)

Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and rev...

Purchasing and Supply Chain Management

What does the purchasing power parity theory say? Give an example to illustrate your answer.

Macroeconomics

bartleby
© bartleby 2019