In 2018, Bratten Fitness Company made the following cash purchases:1. The exclusive right to manufacture and sell the X-Core workout machine from Symmetry Corporation for$200,000. Symmetry created the unique design for the machine. Bratten also paid an additional $10,000 inlegal and filing fees to attorneys to complete the transaction.2. An initial fee of $300,000 for a three-year agreement with Silver’s Gym to use its name for a new facility inthe local area. Silver’s Gym has locations throughout the country. Bratten is required to pay an additional feeof $5,000 for each month it operates under the Silver’s Gym name, with payments beginning in March 2018.Bratten also purchased $400,000 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 $25,000. The bookincludes healthy recipes, recommendations for dietary supplements, and natural remedies. Bratten plans todisplay 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.
In 2018, Bratten Fitness Company made the following cash purchases:
1. The exclusive right to manufacture and sell the X-Core workout machine from Symmetry Corporation for
$200,000. Symmetry created the unique design for the machine. Bratten also paid an additional $10,000 in
legal and filing fees to attorneys to complete the transaction.
2. An initial fee of $300,000 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 $5,000 for each month it operates under the Silver’s Gym name, with payments beginning in March 2018.
Bratten also purchased $400,000 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 $25,000. 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
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