(c)In 2020, Martinez 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 O for the amounts.)Account Titles and ExplanationDebitCrediteTextbook and Media During 2016, Martinez Corporation spent $155,520 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 $28,080 related to the patent were incurred as of October 1, 2016.(a)Your answer is correct.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 O for theamounts.)Date Account Titles and ExplanationDebitCredit2016Research and Development Expense155520Cash155520(To record research and development expenses)2016Patents28080Cash28080(To record legal expenses)ch

Answer c) Journal entry - It refers to the process where the business transactions are recorded in the books of accounts for the first time. The double-entry system becomes a base for the purpose of recording the journal entry. A transaction is documented on the same day that it occurs, hence it is also known as Day Book. Journal entry types: Transfer entries Closing entries Adjusting entries Compound entriesJournal entry: Working: Amortization expense =$702+$2808+$3288+$3630=$10428Total patent expense=$28080+$20160=$48240Amount to be write off =Total patent expense-Amortization expense2 years=$48240-$104282 years=$18906

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Accounting

In 2020, Martinez determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2021. Prepare all journal entries required in 2020 and 2021. (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.) Account Titles and Explanation Debit Credit

In 2020, Martinez determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2021. Prepare all journal entries required in 2020 and 2021. (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.) Account Titles and Explanation Debit Credit

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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