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 theamounts. List all debit entries before credit entries. Record entries in the order displayed in the problem statement.)DateAccount Titles and Explanation(To record research and development expenses)(To record legal expenses)(To record amortization expense)DebitCredit During 2021, Culver Corporation spent $169,920 in research and development costs. As a result, a new product called the New AgePiano was patented. The patent was obtained on October 1, 2021, and had a legal life of 20 years and a useful life of 10 years. Legalcosts of $45,360 related to the patent were incurred as of October 1, 2021.

Journal Entry is the primary step to record the transaction in the books of accounts. The expense…

During 2021, Culver Corporation spent $169,920 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2021, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $45,360 related to the patent were incurred as of October 1, 2021.

During 2021, Culver Corporation spent $169,920 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2021, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $45,360 related to the patent were incurred as of October 1, 2021.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

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. List all debit entries before credit entries. Record entries in the order displayed in the problem statement.)
Date
Account Titles and Explanation
(To record research and development expenses)
(To record legal expenses)
(To record amortization expense)
Debit
Credit

During 2021, Culver Corporation spent $169,920 in research and development costs. As a result, a new product called the New Age
Piano was patented. The patent was obtained on October 1, 2021, and had a legal life of 20 years and a useful life of 10 years. Legal
costs of $45,360 related to the patent were incurred as of October 1, 2021.

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Follow-up Question

In 2025, Culver determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by
December 31, 2026. Prepare all journal entries required in 2025 and 2026. (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. List
debit entry before credit entry.)
Date
Account Titles and Explanation
Debit
Credit

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Follow-up Question

On June 1, 2023, Culver spent $9,720 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life
was extended to 12 years from June 1, 2023. Prepare all journal entries required in 2023 and 2024. (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. List all debit entries before credit entries. Record entries in the order displayed in the problem statement.)
Date
Account Titles and Explanation
(To record cost of infringement suit)
(To record amortization expense)
Debit
Credit

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