Current Attempt in Progress Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Pharoah Corporation. 1. 2. Pharoah developed a new manufacturing process, incurring research and development costs of $121,000. The company also purchased a patent for $65,000. In early January, Pharoah capitalized $186,000 as the cost of the patents. Patent amortization expense of $9,300 was recorded based on a 20-year useful life. On July 1, 2022, Pharoah purchased a small company and as a result recorded goodwill of $87,000. Pharoah recorded a half- year's amortization in 2022, based on a 20-year life ($2,175 amortization). The goodwill has an indefinite life. Prepare all journal entries necessary to correct any errors made during 2022. Assume the books have not yet been closed for 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2 (To record research and development expense) (To reverse amortization expense) eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer
Current Attempt in Progress Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Pharoah Corporation. 1. 2. Pharoah developed a new manufacturing process, incurring research and development costs of $121,000. The company also purchased a patent for $65,000. In early January, Pharoah capitalized $186,000 as the cost of the patents. Patent amortization expense of $9,300 was recorded based on a 20-year useful life. On July 1, 2022, Pharoah purchased a small company and as a result recorded goodwill of $87,000. Pharoah recorded a half- year's amortization in 2022, based on a 20-year life ($2,175 amortization). The goodwill has an indefinite life. Prepare all journal entries necessary to correct any errors made during 2022. Assume the books have not yet been closed for 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2 (To record research and development expense) (To reverse amortization expense) eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly
recorded by Pharoah Corporation.
1.
2.
Pharoah developed a new manufacturing process, incurring research and development costs of $121,000. The company also
purchased a patent for $65,000. In early January, Pharoah capitalized $186,000 as the cost of the patents. Patent
amortization expense of $9,300 was recorded based on a 20-year useful life.
On July 1, 2022, Pharoah purchased a small company and as a result recorded goodwill of $87,000. Pharoah recorded a half-
year's amortization in 2022, based on a 20-year life ($2,175 amortization). The goodwill has an indefinite life.
Prepare all journal entries necessary to correct any errors made during 2022. Assume the books have not yet been closed for 2022.
(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for
the account titles and enter O for the amounts.)
No. Account Titles and Explanation
Debit
Credit
1.
2
(To record research and development expense)
(To reverse amortization expense)
eTextbook and Media
List of Accounts
Save for Later
Attempts: 0 of 3 used Submit Answer
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