Crane Data Incorporated collects customer data through a permission-based direct response survey to provide marketing information to the consumer-packaged goods industry. The customer list is a database that includes customer names, contacts, demographic and consumer purchasing information. The cost of creating the customer list is $8,190,000. It has a limited life and is amortized on a straight-line basis over 15 years. Crane has determined that the list has a residual value of $81,900. Prepare the appropriate journal entries for the capitalization of the asset and the annual amortization. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation (To record cost) (To record amortization) Debit Credit

Crane Data Incorporated collects customer data through a permission-based direct response survey to provide marketing information to the consumer-packaged goods industry. The customer list is a database that includes customer names, contacts, demographic and consumer purchasing information. The cost of creating the customer list is $8,190,000. It has a limited life and is amortized on a straight-line basis over 15 years. Crane has determined that the list has a residual value of $81,900. Prepare the appropriate journal entries for the capitalization of the asset and the annual amortization. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation (To record cost) (To record amortization) Debit Credit

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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Hello! I need URGENT help with this accounting problem, thank you in advance! We have to prepare all adjusting entries at December 31 to record amortization required by the events. If no entry is required, state "no entry" Thank you in advance.
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