Current Attempt in Progress Carla Vista Corporation has the following selected transactions during the year ended December 31, 2024: 1 Purchased a copyright for $117,480 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Jan Mar. 1 Sept. 1 Dec. 31 Acquired a franchise with a contract period of nine years for $500,850; the expiration date is March 1, 2033. Paid cash of $38,820 and borrowed the remainder from the bank. Purchased a trademark with an indefinite life for $73.190 cash. As the purchase was being finalized, spent $33,150 cash in legal fees to successfully defend the trademark in court. Purchased an advertising agency for $640,000 cash. The agency's only assets reported on its statement of financial position immediately before the purchase were accounts receivable of $58,000, furniture of $170,000, and leasehold improvements of $320,000. Carla Vista hired an independent appraiser who estimated that the fair value of these assets was accounts receivable $58,000, furniture $180,000, and leasehold improvements $336,000. Carla Vista is not assuming any liabilities pertaining to the agency.

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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Question
Question bord
Date
an 1
ept. 1
Mar. 1
ept. 1
Question 6 of 6
K.31
ept. 1
✓
Account Titles and Explanation
Cost of Goods Sold
Cash
Cash
expenses
cash
Bank Loan Payable
Cash
Trademarks
(To record purchase of trademark)
Cash
Trademarks
(To record purchase of trademark)
Trademarks
(To record costs incurred to defend trademark)
Advertising Expense
Accounts Receivable
Furniture
Leasehold Improvements
Cash
Debit
117480
500850
106340
106340
106340
640000
Credit
117400
462000
106340
306340
38820
106340
106340
10000
58000
170000
320000
92000
P
SUP
Transcribed Image Text:Question bord Date an 1 ept. 1 Mar. 1 ept. 1 Question 6 of 6 K.31 ept. 1 ✓ Account Titles and Explanation Cost of Goods Sold Cash Cash expenses cash Bank Loan Payable Cash Trademarks (To record purchase of trademark) Cash Trademarks (To record purchase of trademark) Trademarks (To record costs incurred to defend trademark) Advertising Expense Accounts Receivable Furniture Leasehold Improvements Cash Debit 117480 500850 106340 106340 106340 640000 Credit 117400 462000 106340 306340 38820 106340 106340 10000 58000 170000 320000 92000 P SUP
Current Attempt in Progress:
Carla Vista Corporation has the following selected transactions during the year ended December 31, 2024:
1 Purchased a copyright for $117,480 cash. The copyright has a useful life of six years and a remaining legal life of 30
years.
Jan.
Mar. 1
Sept. 1
Dec. 31
Acquired a franchise with a contract period of nine years for $500,850; the expiration date is March 1, 2033, Paid
cash of $38,820 and borrowed the remainder from the bank.
Purchased a trademark with an indefinite life for $73,190 cash. As the purchase was being finalized, spent $33,150
cash in legal fees to successfully defend the trademark in court.
Purchased an advertising agency for $640,000 cash. The agency's only assets reported on its statement of financial
position immediately before the purchase were accounts receivable of $58,000, furniture of $170,000, and
leasehold improvements of $320,000. Carla Vista hired an independent appraiser who estimated that the fair.
value of these assets was accounts receivable $58,000, furniture $180,000, and leasehold improvements
$336,000. Carla Vista is not assuming any liabilities pertaining to the agency.
h
SU
Transcribed Image Text:Current Attempt in Progress: Carla Vista Corporation has the following selected transactions during the year ended December 31, 2024: 1 Purchased a copyright for $117,480 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Jan. Mar. 1 Sept. 1 Dec. 31 Acquired a franchise with a contract period of nine years for $500,850; the expiration date is March 1, 2033, Paid cash of $38,820 and borrowed the remainder from the bank. Purchased a trademark with an indefinite life for $73,190 cash. As the purchase was being finalized, spent $33,150 cash in legal fees to successfully defend the trademark in court. Purchased an advertising agency for $640,000 cash. The agency's only assets reported on its statement of financial position immediately before the purchase were accounts receivable of $58,000, furniture of $170,000, and leasehold improvements of $320,000. Carla Vista hired an independent appraiser who estimated that the fair. value of these assets was accounts receivable $58,000, furniture $180,000, and leasehold improvements $336,000. Carla Vista is not assuming any liabilities pertaining to the agency. h SU
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