Exercise 9-14 http://edugen.wileyplus.com/edugen/art2/common/pixel.gif http://edugen.wileyplus.com/edugen/art2/common/pixel.gif http://edugen.wileyplus.com/edugen/art2/common/icons/qdone.gif Your answer is correct. Kopke Company, organized in 2012, has these transactions related to intangible assets in that year: Jan. 2 Purchased a patent (5-year life) $325,500. Apr. 1 Goodwill acquired as a result of purchased business (indefinite life) $411,300. July 1 Acquired a 9-year franchise; expiration date July 1, 2021, $577,300. Sept. 1 Research and development costs $180,500. (a) Prepare the necessary entries to record these transactions related to intangibles. All costs incurred were for cash. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) Make an entry as of December 31, 2012, recording any necessary amortization. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (c) Indicate what the balances should be on December 31, 2012.

Exercise 9-14

 

	Your answer is correct.

Kopke Company, organized in 2012, has these transactions related to intangible assets in that year:

Jan.	2		Purchased a patent (5-year life) $325,500.
Apr.	1		Goodwill acquired as a result of purchased business (indefinite life) $411,300.
July	1		Acquired a 9-year franchise; expiration date July 1, 2021, $577,300.
Sept.	1		Research and development costs $180,500.

(a) Prepare the necessary entries to record these transactions related to intangibles. All costs incurred were for cash. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(b) Make an entry as of December 31, 2012, recording any necessary amortization. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(c) Indicate what the balances should be on December 31, 2012.

 

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