7/1/25 10/1/25 12/31/25 1/2/26 3/1/26 4/1/26 6/1/26 9/1/26 8-year franchise; expiration date 6/30/33 Advance payment on laboratory space (2-year lease) Net loss for 2025 including state incorporation fee, $1,500, and related legal fees of organizing, $5,500 (all fees incurred in 2025) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs $36,000 28,200 12,600 83,000 73,000 277,200 13,340 142,000

7/1/25 10/1/25 12/31/25 1/2/26 3/1/26 4/1/26 6/1/26 9/1/26 8-year franchise; expiration date 6/30/33 Advance payment on laboratory space (2-year lease) Net loss for 2025 including state incorporation fee, $1,500, and related legal fees of organizing, $5,500 (all fees incurred in 2025) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs $36,000 28,200 12,600 83,000 73,000 277,200 13,340 142,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

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Current Attempt in Progress Carla Vista Co., organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025 and 2026. 7/1/25 10/1/25 12/31/25 1/2/26 3/1/26 4/1/26 6/1/26 9/1/26 Intangible Assets 8-year franchise; expiration date 6/30/33 Advance payment on laboratory space (2-year lease) Net loss for 2025 including state incorporation fee, $3,000, and related legal fees of organizing, $7,000 (all fees incurred in 2025) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs $48,000 25,800 17,800 80,600 82,000 279,600 12,765 165,000 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2026, recording any necessary…
Oo.23. Subject :- Account
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Larkspur Limited had the following statement of financial position for the current year, 2023: Current assets Investments Property, plant, and equipment Intangible assets Other assets 1. 2. 3. 4. 5. 6. LARKSPUR LIMITED Statement of Financial Position December 31, 2023 7. 8. $109,060 70,520 173,840 The following additional information is available and provides information regarding errors in classification which need to be corrected: 26,240 31,160 $410,820 Current liabilities Long-term liabilities Shareholders' equity $79,540 139,400 191,880 $410,820 Current Assets include the following: bank account with an overdraft balance of $12,300; inventory with a FIFO cost of $71,340 and a net realizable value of $69,700; accounts receivable of $54,120 less allowance for expected credit losses of $2,460. Investments include the following: a mortgage receivable from parent company $49,200, due in 2028; FV-NI investments held for trading with a cost of $8,200 and a fair value of $9,840; FV-OCI…
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E11.6B (LO 1,2,4) (Recording and Amortization of Intangibles) Parrish Company, organized in 2025, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025: 1/2/25 4/1/25 7/1/25 8/1/25 9/1/25 Purchased patent (8-year life) Purchased goodwill (indefinite life) Purchased franchise with 10-year life; expiration date 7/1/35 Payment for copyright (5-year life) Research and development costs $ 625,000 540,000 675,000 246,000 342,500 $2,428,500 Instructions Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2025, recording any necessary amor- tization and reflecting all balances accurately as of that date. (Use straight-line amortization.)
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