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 $211,000. Symmetry created the unique design for the equipment. Bratten also paid an additional $15,500 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 $6,1Q0 for each month it operates under the Silver's Gym name, with payments beginning in March 2021. Bratten also purchased $411,000 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 $30,000. 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 field.) X Answer is complete but not entirely correct. No Transaction General Journal Debit Credit 1 Patent 22,800 X Franchise 305,000 X Equipment 412,000 X Copyright 31,000 Cash 976,000
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 $211,000. Symmetry created the unique design for the equipment. Bratten also paid an additional $15,500 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 $6,1Q0 for each month it operates under the Silver's Gym name, with payments beginning in March 2021. Bratten also purchased $411,000 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 $30,000. 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 field.) X Answer is complete but not entirely correct. No Transaction General Journal Debit Credit 1 Patent 22,800 X Franchise 305,000 X Equipment 412,000 X Copyright 31,000 Cash 976,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 $211,000. Symmetry
created the unique design for the equipment. Bratten also paid an additional $15,500 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 $6,1Q0 for each month it operates under
the Silver's Gym name, with payments beginning in March 2021. Bratten also purchased $411,000 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 $30,000. 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 field.)
X Answer is complete but not entirely correct.
No
Transaction
General Journal
Debit
Credit
1
Patent
22,800 X
305,000 X
Franchise
Equipment
412,000 X
Copyright
31,000 X
Cash
976,000 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e1bfd6a-3cb6-4031-858f-4ba8da8545b1%2F96b019e7-3049-4748-8ec0-7b8b622556f9%2Frk6pg3_processed.jpeg&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 $211,000. Symmetry
created the unique design for the equipment. Bratten also paid an additional $15,500 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 $6,1Q0 for each month it operates under
the Silver's Gym name, with payments beginning in March 2021. Bratten also purchased $411,000 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 $30,000. 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 field.)
X Answer is complete but not entirely correct.
No
Transaction
General Journal
Debit
Credit
1
Patent
22,800 X
305,000 X
Franchise
Equipment
412,000 X
Copyright
31,000 X
Cash
976,000 X
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