Exercise 11-19 (Algo) Amortization [LO11-4, 11-5) Janes Company provided the following Information on Intangible assets: a. A patent was purchased from the Lou Company for $1,550,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $520,000 when Lou sold it to Janes. b. During 2021, a franchise was purchased from the Rink Company for $670,000. The contractual life of the franchise Is 10 years and Janes records a full year of amortization in the year of purchase. c. Janes incurred research and development costs in 2021 as follows: Materials and supplies Personnel Indirect costs Total d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. $157,000 197,000 77,000 $431,000 Required: 1. Prepare the entries necessary for years 2019 through 2021 to reflect the above Information. 2. Prepare a schedule showing the Intangible asset section of Janes's December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2
Exercise 11-19 (Algo) Amortization [LO11-4, 11-5) Janes Company provided the following Information on Intangible assets: a. A patent was purchased from the Lou Company for $1,550,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $520,000 when Lou sold it to Janes. b. During 2021, a franchise was purchased from the Rink Company for $670,000. The contractual life of the franchise Is 10 years and Janes records a full year of amortization in the year of purchase. c. Janes incurred research and development costs in 2021 as follows: Materials and supplies Personnel Indirect costs Total d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. $157,000 197,000 77,000 $431,000 Required: 1. Prepare the entries necessary for years 2019 through 2021 to reflect the above Information. 2. Prepare a schedule showing the Intangible asset section of Janes's December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2
Chapter1: Financial Statements And Business Decisions
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![Exercise 11-19 (Algo) Amortization [LO11-4, 11-5]
Janes Company provided the following Information on Intangible assets:
a. A patent was purchased from the Lou Company for $1,550,000 on January 1, 2019. Janes estimated the remaining useful life of the
patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $520,000 when Lou sold it to
Janes.
b. During 2021, a franchise was purchased from the Rink Company for $670,000. The contractual life of the franchise is 10 years and
Janes records a full year of amortization in the year of purchase.
c. Janes incurred research and development costs in 2021 as follows:
Materials and supplies
Personnel
Indirect costs
Total
d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased
from Lou is only five more years.
Required:
1. Prepare the entries necessary for years 2019 through 2021 to reflect the above Information.
2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet.
Complete this question by entering your answers in the tabs below.
Required 1
$157,000
197,000
77,000
$431,000
Intangible assets:
Required 2
Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet.
Partial Balance Sheet
December 31, 2021
Total intangibles
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F8803431a-8810-4386-930f-bebecb6eee3a%2Fpj1e7kw_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 11-19 (Algo) Amortization [LO11-4, 11-5]
Janes Company provided the following Information on Intangible assets:
a. A patent was purchased from the Lou Company for $1,550,000 on January 1, 2019. Janes estimated the remaining useful life of the
patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $520,000 when Lou sold it to
Janes.
b. During 2021, a franchise was purchased from the Rink Company for $670,000. The contractual life of the franchise is 10 years and
Janes records a full year of amortization in the year of purchase.
c. Janes incurred research and development costs in 2021 as follows:
Materials and supplies
Personnel
Indirect costs
Total
d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased
from Lou is only five more years.
Required:
1. Prepare the entries necessary for years 2019 through 2021 to reflect the above Information.
2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet.
Complete this question by entering your answers in the tabs below.
Required 1
$157,000
197,000
77,000
$431,000
Intangible assets:
Required 2
Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet.
Partial Balance Sheet
December 31, 2021
Total intangibles
< Required 1
Required 2 >
![Exercise 11-19 (Algo) Amortization [LO11-4, 11-5]
Janes Company provided the following information on Intangible assets:
a. A patent was purchased from the Lou Company for $1,550,000 on January 1, 2019. Janes estimated the remaining useful life of the
patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $520,000 when Lou sold it to
Janes.
b. During 2021, a franchise was purchased from the Rink Company for $670,000. The contractual life of the franchise Is 10 years and
Janes records a full year of amortization in the year of purchase.
c. Janes incurred research and development costs in 2021 as follows:
Materials and supplies
Personnel
Indirect costs
Total
d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased
from Lou is only five more years.
Required:
1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information.
2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare the entries necessary for years 2019 through 2021 to reflect the above information. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
View transaction list
$157,000
197,000
77,000
$431,000
Journal entry worksheet
1 2 3 4
Record the purchase of a patent.
Note: Enter debits before credits.
Date
January 01, 2019
Record entry
5
8
General Journal
Clear entry
7
Debit
Credit
View general Journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F8803431a-8810-4386-930f-bebecb6eee3a%2Fu5y0bnle_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 11-19 (Algo) Amortization [LO11-4, 11-5]
Janes Company provided the following information on Intangible assets:
a. A patent was purchased from the Lou Company for $1,550,000 on January 1, 2019. Janes estimated the remaining useful life of the
patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $520,000 when Lou sold it to
Janes.
b. During 2021, a franchise was purchased from the Rink Company for $670,000. The contractual life of the franchise Is 10 years and
Janes records a full year of amortization in the year of purchase.
c. Janes incurred research and development costs in 2021 as follows:
Materials and supplies
Personnel
Indirect costs
Total
d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased
from Lou is only five more years.
Required:
1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information.
2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare the entries necessary for years 2019 through 2021 to reflect the above information. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
View transaction list
$157,000
197,000
77,000
$431,000
Journal entry worksheet
1 2 3 4
Record the purchase of a patent.
Note: Enter debits before credits.
Date
January 01, 2019
Record entry
5
8
General Journal
Clear entry
7
Debit
Credit
View general Journal
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