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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![(c)
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
eTextbook and Media](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bb1ff74-656a-48d4-946d-440c26f1021c%2Fb3b46712-e543-463f-be14-4cb2819fde4e%2Faquhc6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(c)
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
eTextbook and Media
![During 2016, Martinez Corporation spent $155,520 in research and development costs. As a result, a new product called the New Age
Piano 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. Legal
costs 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 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.)
Date Account Titles and Explanation
Debit
Credit
2016
Research and Development Expense
155520
Cash
155520
(To record research and development expenses)
2016
Patents
28080
Cash
28080
(To record legal expenses)
ch](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bb1ff74-656a-48d4-946d-440c26f1021c%2Fb3b46712-e543-463f-be14-4cb2819fde4e%2Fdqdihrr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:During 2016, Martinez Corporation spent $155,520 in research and development costs. As a result, a new product called the New Age
Piano 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. Legal
costs 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 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.)
Date Account Titles and Explanation
Debit
Credit
2016
Research and Development Expense
155520
Cash
155520
(To record research and development expenses)
2016
Patents
28080
Cash
28080
(To record legal expenses)
ch
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