During 2016, Blue Corporation spent $145,440 in research and development costs. As a result, a new product called the New AgePiano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legalcosts of $19,440 related to the patent were incurred as of October 1, 2016.Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 forthe amounts.)Date Account Titles and ExplanationDebitCredit2016(To record research and development expenses)2016(To record legal expenses)2016(To record amortization expense)2017eTextbook and MediaList of AccountsOn June 1, 2018, Blue spent $8,280 to successfully prosecute a patent infringement suit. As a result, the estimate of useful lifewas extended to 12 years from June 1, 2018. Prepare all journal entries required in 2018 and 2019. (Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter O for the amounts.)Date Account Titles and ExplanationDebitCredit2018(To record patents)2018(To record amortization expense)2019 In 2020, Blue determined that a competitor's product would make the New Age Piano obsolete and the patent worthless byDecember 31, 2021. Prepare all journal entries required in 2020 and 2021. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)Account Titles and ExplanationDebitCrediteTextbook and MediaList of Accounts

In order to record the research & development expenses incurred to develop in-house patents,…

During 2016, Blue Corporation spent $145,440 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, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $19,440 related to the patent were incurred as of October 1, 2016. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (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.)

During 2016, Blue Corporation spent $145,440 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, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $19,440 related to the patent were incurred as of October 1, 2016. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (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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