In 2021, the company successfully defends the patent in extended litigation at a cost of $44,800, thereby extending the patent life to December 31, 2028. What is the proper way to account for this cost? Also, record patent amortization (full year) in 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 2021, the company successfully defends the patent in extended litigation at a cost of $44,800, thereby extending the patent life to December 31, 2028. What is the proper way to account for this cost? Also, record patent amortization (full year) in 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

See similar textbooks

Similar questions

answer in text form please (without image), Note: .Every entry should have narration please
i need the answer quickly
Write double entry? On 7 November 2021 there was a fire in the warehouse, in which inventory valued at $12,000 was destroyed. Under the terms of the insurance contract, the insurance company has stated that it will only pay out the first $3,000 of the claim. No entries have yet been made to record this.
Marks Company sold goods to Birch Company totaling $51,830 during 2020. When Birch was unable to meet Marks’normal terms, Marks accepted from Birch a $60,000, 3-year non-interest-bearing note due 1/1/24. (Marks has acceptednotes in the past in settlement of open accounts.)Required:(a) Prepare Marks’ journal entry on 1/1/21 when the note was signed.(b) Prepare a table which shows the amortization of bond discount over the life of the note.(c) What is the 12/31/22 adjusting entry that will be recorded by Marks?(d) What is the purpose of the journal entry at 12/31/22?
Please help me
Bridgeport Machinery Co. manufactures equipment to a very high standard of quality; however, it must still provide a warranty for each unit sold, and there are instances where the machines do require repair after they have been put into use. Bridgeport started in business in 2023, and as the controller, you are trying to determine whether to use the assurance-type or service-type warranty approach to measure the warranty obligation. You would like to show the company president how this choice would affect the financial statements for 2023, and advise him of the better choice, keeping in mind that the service-type approach is consistent with IFRS, and that there are plans to take Bridgeport public in a few years. You have determined that sales on account for the year were 1,040 units, with a selling price of $2,700 each. Ignore any cost of goods sold. The warranty is for two years, and the estimated warranty cost averages $180 per machine. Actual costs of servicing warranties for the…
Garrett Corporation began operations in 2021. To maintain its accounting records, Garrett entered into a two-year agreement with Accurite Company. The agreement specifies that Garrett will pay $85,000 to Accurite immediately, and in return, Accurite will make its accounting software accessible via the Internet to Garrett and maintain all infrastructure necessary to run the software and store records. At any time, Garrett Corporation can freely remove its records and run the software on its own hardware or that of another accounting services company. In addition to the cost of the agreement, Garrett incurred $15,000 early in the year devising a plan for its accounting software needs, $25,000 for customizing its own computers for integration with Accurite’s software, and $20,000 after the software was implemented to train its employees. Determine the initial amount that Garrett should capitalize related to the software development costs.
Saar Associates sells two licenses to Kim & Company on September 1, 2021. First, in exchange for $197,000, Saar provides Kim with a copy of its proprietary investment management software, which Saar does not anticipate updating and which Kim can use permanently. Second, in exchange for $171,000, Saar provides Kim with a three-year right to market Kim's financial advisory services under the name of Saar Associates, which Saar advertises on an ongoing basis. How much revenue will Saar recognize in 2021 under this arrangement? (Do not round intermediate calculation.) Revenue
In 2025, Culver determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2026. Prepare all journal entries required in 2025 and 2026. (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. List debit entry before credit entry.) Date Account Titles and Explanation Debit Credit
Do you want to make a double entry? On November 7, 2021, a fire broke out at the store, destroying merchandise worth $12,000. The insurance company has declared that it will only pay out the first $3,000 of the claim under the provisions of the contract. There haven't been any entries made yet to document this.