During 2021, Grouper Corporation spent $152,640 in research and development costs. As a result, a new product called the 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 $28,080 related to the patent were incurred as of October 1, 2021. (a) Your answer is partially correct. Prepare all journal entries required in 2021 and 2022 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. List all debit entries before credit entries. Record entries in the order displayed in the problem statement.) Date 2021 Y 2021 V 0001x Account Titles and Explanation Research and Development Expense Cash (To record research and development expenses) Legal Fees Expense Cash (To record legal expenses) Amortization Expense Debit 152640 28080 18072 Credit 152640 28080

During 2021, Grouper Corporation spent $152,640 in research and development costs. As a result, a new product called the 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 $28,080 related to the patent were incurred as of October 1, 2021. (a) Your answer is partially correct. Prepare all journal entries required in 2021 and 2022 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. List all debit entries before credit entries. Record entries in the order displayed in the problem statement.) Date 2021 Y 2021 V 0001x Account Titles and Explanation Research and Development Expense Cash (To record research and development expenses) Legal Fees Expense Cash (To record legal expenses) Amortization Expense Debit 152640 28080 18072 Credit 152640 28080

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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Please show calculations, thank you.
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