Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Metlock Corporation. 1. 2. Metlock developed a new manufacturing process, incurring research and development costs of $129,000. The company also purchased a patent for $67,000. In early January, Metlock capitalized $196,000 as the cost of the patents. Patent amortization expense of $9,800 was recorded based on a 20-year useful life. On July 1, 2022, Metlock purchased a small company and as a result recorded goodwill of $81,000. Metlock recorded a half- year's amortization in 2022, based on a 20-year life ($2,025 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.)

Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Metlock Corporation. 1. 2. Metlock developed a new manufacturing process, incurring research and development costs of $129,000. The company also purchased a patent for $67,000. In early January, Metlock capitalized $196,000 as the cost of the patents. Patent amortization expense of $9,800 was recorded based on a 20-year useful life. On July 1, 2022, Metlock purchased a small company and as a result recorded goodwill of $81,000. Metlock recorded a half- year's amortization in 2022, based on a 20-year life ($2,025 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.)

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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