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Blossom Limited organized late in 2022 and set up a single account for all intangible assets. The following summary shows the entries in 2023 (all debits) that have been recorded in Intangible Assets since then: Purchased patent (8-year life) $340,000 Costs to search for new ways to apply patent that was purchased on Jan. 2 21,000 Purchased goodwill (indefinite life) 300,000 Purchased franchise with 10-year life; expiration date July 1, 2033 255,000 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 33,000 Payment for copyright (5-year life) 139,200 Purchased trademark (3-year life) 14,400 Purchased customer lists (2-year life) Jan. 2 Mar. 31 Apr. 1 July Aug. 1 1 1 1 1 Sept. 1 Research costs 8,400 236,000 $1,347,000

Blossom Limited organized late in 2022 and set up a single account for all intangible assets. The following summary shows the entries in 2023 (all debits) that have been recorded in Intangible Assets since then: Purchased patent (8-year life) $340,000 Costs to search for new ways to apply patent that was purchased on Jan. 2 21,000 Purchased goodwill (indefinite life) 300,000 Purchased franchise with 10-year life; expiration date July 1, 2033 255,000 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 33,000 Payment for copyright (5-year life) 139,200 Purchased trademark (3-year life) 14,400 Purchased customer lists (2-year life) Jan. 2 Mar. 31 Apr. 1 July Aug. 1 1 1 1 1 Sept. 1 Research costs 8,400 236,000 $1,347,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blossom Limited organized late in 2022 and set up a single account for all intangible assets. The following summary shows the entries in 2023 (all debits) that have been recorded in Intangible Assets since then: Jan. 2 Purchased patent (8-year life) Costs to search for new ways to apply patent that was purchased on Jan. 2 Purchased goodwill (indefinite life) Purchased franchise with 10-year life; expiration date July 1, 2033 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 Payment for copyright (5-year life) Purchased trademark (3-year life) Purchased customer lists (2-year life) Research costs 31 Apr. 1 July Mar. Aug. Sept. (a) 1 1 1 1 1 1 Your answer is correct. Intangible Assets-Patents Goodwill Intangible Assets-Franchises Research and Development Expense Intangible Assets-Copyrights Advertising Expense Intangible Assets-Trademarks Intangible Assets-Customer lists Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when the amount is entered. Do no Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Intangible Assets Debit 340000 300000 255000 257000 139200 33000 14400 8400 Credit $340,000 1347000 21,000 300,000 255,000 33,000 139,200 14,400 8,400 236,000 $1,347,000
Transcribed Image Text:Blossom Limited organized late in 2022 and set up a single account for all intangible assets. The following summary shows the entries in 2023 (all debits) that have been recorded in Intangible Assets since then: Jan. 2 Purchased patent (8-year life) Costs to search for new ways to apply patent that was purchased on Jan. 2 Purchased goodwill (indefinite life) Purchased franchise with 10-year life; expiration date July 1, 2033 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 Payment for copyright (5-year life) Purchased trademark (3-year life) Purchased customer lists (2-year life) Research costs 31 Apr. 1 July Mar. Aug. Sept. (a) 1 1 1 1 1 1 Your answer is correct. Intangible Assets-Patents Goodwill Intangible Assets-Franchises Research and Development Expense Intangible Assets-Copyrights Advertising Expense Intangible Assets-Trademarks Intangible Assets-Customer lists Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when the amount is entered. Do no Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Intangible Assets Debit 340000 300000 255000 257000 139200 33000 14400 8400 Credit $340,000 1347000 21,000 300,000 255,000 33,000 139,200 14,400 8,400 236,000 $1,347,000
Make the entry as at December 31, 2023, for any necessary amortization so that all balances are accurate as at that date. (Credit account titles ar 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit (c) Amortization Expense Accumulated Amortization - Patents Accumulated Amortization - Franchises Accumulated Amortization - Copyrights Accumulated Amortization - Trademarks Accumulated Amortization - Customer lists eTextbook and Media List of Accounts Patents Franchise Copyright Trademark Customer lists Goodwill Provide the asset amounts reported on the December 31, 2023 statement of financial position. (Round answers to O decimal places, e.g. 5,275.) $ tA $ $ $ $ tA +A 70600 $ Credit 42500 12750 11600 2000 1750
Transcribed Image Text:Make the entry as at December 31, 2023, for any necessary amortization so that all balances are accurate as at that date. (Credit account titles ar 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit (c) Amortization Expense Accumulated Amortization - Patents Accumulated Amortization - Franchises Accumulated Amortization - Copyrights Accumulated Amortization - Trademarks Accumulated Amortization - Customer lists eTextbook and Media List of Accounts Patents Franchise Copyright Trademark Customer lists Goodwill Provide the asset amounts reported on the December 31, 2023 statement of financial position. (Round answers to O decimal places, e.g. 5,275.) $ tA $ $ $ $ tA +A 70600 $ Credit 42500 12750 11600 2000 1750
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