equired: repare a summary journal entry to record expenditures related to initial acquisitions. (If no entry is required for a transaction/event, elect "No journal entry required" In the first account fleld.)
equired: repare a summary journal entry to record expenditures related to initial acquisitions. (If no entry is required for a transaction/event, elect "No journal entry required" In the first account fleld.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi there, can help with answering the attached questions, thanks so much.
![Exercise 10-5 (Algo) Intangibles [LO10-1]
In 2021, Bratten Fitness Company made the following cash purchases:
1. The exclusive right to manufacture and sell the X-Core workout equipment from Symmetry Corporation for $205,000. Symmetry
created the unique design for the equipment. Bratten also paid an additional $12,500 in legal and filing fees to attorneys to
complete the transaction.
2. An initial fee of $270,000 for a three-year agreement with Silver's Gym to use its name for a new facility in the local area. Silver's
Gym has locations throughout the country. Bratten is required to pay an additional fee of $5,500 for each month it operates under
the Silver's Gym name, with payments beginning in March 2021. Bratten also purchased $405,000 of exercise equipment to be
placed in the new facility.
3. The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $24,000. The book includes healthy recipes,
recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its
new facility, as well as make it available online.
Required:
Prepare a summary journal entry to record expenditures related to initial acquisitions. (If no entry is required for a transaction/event,
select "No journal entry required" In the first account fleld.)
View transaction list
Journal entry worksheet
<
1
Record the expenditures related to initial acquisitions.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2Fc142c3ad-1493-4964-9a46-9ba583825a08%2Fhjgjxdk_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 10-5 (Algo) Intangibles [LO10-1]
In 2021, Bratten Fitness Company made the following cash purchases:
1. The exclusive right to manufacture and sell the X-Core workout equipment from Symmetry Corporation for $205,000. Symmetry
created the unique design for the equipment. Bratten also paid an additional $12,500 in legal and filing fees to attorneys to
complete the transaction.
2. An initial fee of $270,000 for a three-year agreement with Silver's Gym to use its name for a new facility in the local area. Silver's
Gym has locations throughout the country. Bratten is required to pay an additional fee of $5,500 for each month it operates under
the Silver's Gym name, with payments beginning in March 2021. Bratten also purchased $405,000 of exercise equipment to be
placed in the new facility.
3. The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $24,000. The book includes healthy recipes,
recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its
new facility, as well as make it available online.
Required:
Prepare a summary journal entry to record expenditures related to initial acquisitions. (If no entry is required for a transaction/event,
select "No journal entry required" In the first account fleld.)
View transaction list
Journal entry worksheet
<
1
Record the expenditures related to initial acquisitions.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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