DOWNS INNOVATIONS INC. PURCHASES A PATENT FOR $200,000 ON JANUARY 2, 2023. THE PATENT HAS AN ESTIMATED USEFUL LIFE OF 10 YEARS. PREPARE THE JOURNAL ENTRY TO RECORD THE AMORTIZATION EXPENSE FOR THE FIRST YEAR.
Q: Consider the following information for a particular company and calculate the gross profit in…
A: Step 1: Understanding Gross ProfitGross profit measures how much money a company makes after…
Q: Accounting problem with question
A: Step 1: Define Days Sales in InventoryThe days sales in inventory shows the number of days that a…
Q: Net cash flow
A: To determine the net cash flow provided by (or used in) operating activities, we use the cash flow…
Q: Cost Pools Budgeted Costs Cost Driver Practical Capacity Budgeted Activity for S-101 Budgeted…
A: Step 1: To analyze cost drivers, calculate cost proportions, determine slack capacity, and compare…
Q: I need help with accounting question is correct answer
A: Step 1: Debt-to-Equity RatioThe debt-to-equity ratio allows the users of financial statements to…
Q: What is the firm's weighted average cost of capital? General accounting
A: 1. Calculate the After-Tax Cost of Debt:After-Tax Cost of Debt = Risk-Free Rate * (1 - Tax…
Q: Please give me true answer this financial accounting question
A: To calculate the Price-to-Earnings (P/E) ratio, we follow these steps: Calculate net income: Net…
Q: Income statement would report net sales of
A: Concept of Sales RevenueSales revenue represents the total income a business generates from selling…
Q: I want the correct answer with accounting question
A: Step 1: Define The Balance SheetThe balance sheet is a statement of permanent accounts, which are…
Q: Answer please
A: Explanation of Full Costing:Full costing, also known as absorption costing, is a method of…
Q: Provide ans. General account subject
A: Correct Answer:a. Practical standard Explanation:When determining standard costs, companies must…
Q: ?? Financial accounting question
A: Step 1: Definitions:Net Profit Margin: Measures the percentage of revenue that remains as profit…
Q: What is its ROE? General accounting
A: Step 1: Return on equity is the profitability ratio and it can be calculated using the formula…
Q: Correct Answer
A: Detailed explanation: Operating leverage identifies the sensitivity of operating income adjustments…
Q: None
A: Here's how to calculate the total dollar amount you cleared on this investment:Calculate the total…
Q: I need help with this problem and accounting
A: Step 1: Definition of Net IncomeNet income is the total revenue earned by an entity after deducting…
Q: Can you please solve this general accounting question?
A: To determine Grafton Ltd.'s total product cost for March, we need to calculate the sum of prime cost…
Q: Hii expert please provide correct answer general Accounting question
A: Days sales outstanding (DSO) = (Average accounts receivable / Credit sales) x Number of days Compute…
Q: Give answer this financial accounting
A: Step 1: Define Compensating BalanceThe compensating balance refers to the amount of money required…
Q: General Accounting
A: To calculate the expected return on the asset, we use the Capital Asset Pricing Model…
Q: Hello expert give me solution this question general accounting
A: Step 1: Information givenReturn on equity = 11.5% or 0.115Retention ratio = 55% or 0.55Recently paid…
Q: I need step by step solution
A: Step 1: Definition of Quick RatioThe quick ratio (also known as the acid-test ratio) measures a…
Q: The cost based using the absorption costing approach is
A: Explanation of Absorption-Cost Approach:The absorption-cost approach includes all manufacturing…
Q: The standard materials cost of a product is $40 per unit, based on 10 pounds of raw materials at a…
A: a) The standard cost for materials for JanuaryThe standard cost per unit of product is given as $40,…
Q: Please solve this question general accounting
A: Step 1: Define LiabilitiesLiabilities refer to the amount owed by a company. The liabilities are…
Q: Please provide answer this financial accounting question
A: The Times Interest Earned (TIE) Ratio is calculated using the formula: TIE = EBIT / Interest Expense…
Q: ???
A: Step 1: Calculation of cost of goods available for saleCost of goods available for sale = Beginning…
Q: Financial Accounting
A: Step 1: Define Payout RatioThe payout ratio is a financial ratio that is used in the fundamental…
Q: GENERAL ACCOUNT
A: Step 1: Definition of Gross Profit MarginGross Profit Margin is a key profitability ratio that…
Q: Artistic Frames Inc. produces a single product.
A: Explanation of Variable Production Cost:Variable production cost refers to the direct cost incurred…
Q: What was the change in wages pay le for the period? General accounting
A: Step 1: Definition of Change in Wages PayableWages payable represents the amount a company owes to…
Q: Calculate the total fixed cost?
A: To calculate the total fixed cost, we can use the formula for operating income: Operating Income =…
Q: Aurora Health Centre has fixed cost
A: Explanation of Fixed Costs:Fixed costs are business expenses that remain constant regardless of the…
Q: What is the amount of cash collection in may ?
A: Step 1: Definition of Cash CollectionsCash collections refer to the cash received from customers in…
Q: Accounting: [Operating leverage] Pink Corporation has sales of 1,350 units at $55 per unit. Variable…
A: To calculate the Degree of Operating Leverage (DOL), we use the formula: DOL = Contribution Margin /…
Q: Ans ??
A: To calculate the finance charge on Rachel's loan:1. Find the total amount paid over 36 months:Total…
Q: Solve this problem Accounting question
A: Step 1: Definitions:Total Sales: The total revenue generated before deducting expenses. It is…
Q: Accurate Answer
A: Explanation of Gross Margin Percentage:Gross margin percentage is a financial ratio that measures…
Q: please solve Accounting question
A: Understanding Days' Payable Outstanding (DPO)Days' Payable Outstanding (DPO) measures how long a…
Q: Machine hours are planned to be used.
A: Explanation of Maintenance Cost:Maintenance cost refers to the expenses incurred to keep production…
Q: Problem? ? Accounting question
A: Step 1: Current Earnings Per Share Earnings Per Share = Net income/Outstanding sharesEarnings Per…
Q: How much interest did the bank collect for the company ?
A: To determine how much interest the bank collected for the company, we need to analyze the bank…
Q: Answer this Financial Accounting Problem
A: Concept of Fixed CostsFixed costs are expenses that do not change with the level of production or…
Q: Answer? ? Financial accounting question
A: Step 1: Define Days Sales Outstanding (DSO)Days Sales Outstanding (DSO) measures the average number…
Q: Common stockholders equity? General accounting
A: To calculate Bicket, Inc.'s Return on Common Stockholders' Equity (ROE) for 2013, we use the…
Q: Financial Accounting MCQ
A: Concept of Sustainability Impact MeasurementSustainability Impact Measurement refers to the process…
Q: What is the price earning ratio? General accounting
A: Given Information:Sales = $823,000Profit Margin = 4.2% (which is 0.042 in decimal form)Shares…
Q: What is ending inventory?
A: Step 1: Introduction to inventoryInventory refers to the goods and materials that a company holds…
Q: What is carlos days in inventory?
A: Step 1: Definition of Days Sales in InventoryThe days sales in inventory (DSI) measures how many…
Q: General accounting
A: To calculate the monthly lease payments, we can break the problem into two main parts:Depreciation…
Hello tutor provide answer this financial accounting question
Step by step
Solved in 2 steps
- For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.On September 1, 2019, Jordan, Inc. acquired a patent for $600,000. The patent has 16 years remaining in its legal life. However, Jordan, Inc. expects the patent's technology to have a useful life of 8 years. Prepare the journal entries to record the acquisition of the patent and the amortization expense for 2019. Date Account Debit CreditMarigold Company purchases a patent for $504,000 on January 2, 2022. Its estimated useful life is 18 years. Prepare the journal entry to record amortization expense for the first year.
- Taylor Swift Corporation purchases a patent from Salmon Company on January 1, 2025, for $54,000. The patent has a remaining legal life of 16 years. Taylor Swift estimates the patent will have a useful life of 10 years, based on expected product innovations in the market. Prepare Taylor Swift's journal entries to record the purchase of the patent and 2025 amortization. (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.) Account Titles and Explanation Patents cash (To record purchase of patents) Amortization Expense Patents (To record amortization of patents) Debit 24,000 8400 Credit 24,000 24,000Ayayai Corporation purchases a patent from Blossom Company on January 1, 2025, for $63,000. The patent has a remaining legal life of 14 years. Ayayai estimates the patent will have a useful life of 10 years, based on expected product innovations in the market. Prepare Ayayai's journal entries to record the purchase of the patent and 2025 amortization. (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.) Account Titles and Explanation (To record purchase of patents) (To record amortization of patents) Debit CreditBleach Manufacturing purchased a patent from Blond Inc. for $30,000 on January 1, 2023. The patent has 6 years remaining on its term and is expected to bring in revenues to the company for the whole six years. The entry to record one year's amortization for the year ending December 31, 2023, is: Select one: a. Debit Accumulated Amortization-Patents $30,000; credit Amortization Expense-Patents $30,000 b. Debit Accumulated Amortization-Patents $5,000; credit Amortization Expense-Patents $5,000 O c. Debit Amortization Expense-Patents $5,000; credit Accumulated Amortization-Patents $5,000 O d. Debit Amortization Expense-Patents $30,000; credit Accumulated Amortization-Patents $30,000
- Prepare all journal entries and adjusting journal entries necessary to record the information below for year 2022: On November 15, 2022, WTG purchased a patent for $49,500. It used an installment loan to purchase the patent. Payments are due on May 15 and November 15 of every year (so the first payment is due May 15 next year) for the next 5 years. The interest rate is 7%. See amortization table below: ■ Patent Loan Amortization Principal Interest Years Payments/year Payment Date 5/15/23 11/15/23 5/15/24 11/15/24 5/15/25 11/15/25 5/15/26 11/15/26 5/15/27 11/15/27 $49,500 7% 5 2 5,952 Interest Principal Payment Balance 49,500 5,952 45,281 5,952 40,913 5,952 36,393 5,952 5,952 5,952 5,952 5,952 5,952 5,952 1,733 4,219 1,585 4,367 4,520 4,678 4,842 941 5,011 765 5,187 584 5,368 396 5,556 201 5,751 1,432 1,274 1,110 31,715 26,873 21,862 16,675 11,307 5,751 0Please answer, round off final answers to two decimal placesOn January 2, 2021, Concord Company purchased a patent for $390,000. The patent has an 6-year estimated useful life and a legal life of 20 years.Prepare the journal entry to record patent amortization. (Credit account titles are automaticallyindented when the amount is entered. Do not indent manually. List all debit entries before credit entries
- Indigo Corporation purchases a patent from Sandhill Company on January 1, 2020, for $54,000. The patent has a remaining legal life of 12 years. Indigo feels the patent will be useful for 10 years. Prepare Indigo’s journal entries to record the purchase of the patent and 2020 amortization.Robotix Company purchases a patent for $21,000 on January 1. The patent is good for 18 years, after which anyone can use the patent technology. However, Robotix plans to sell products using that patent technology for only 5 years. Prepare the intangible asset section of the year end balance sheet after amortization expense for the year is recorded.G Company purchases a patent for $120000 on Jan 1, 2008. It has estimated useful life is 10 years. Prepare journal entry to record patent expense for the first year
