Instructions General Journal Byrd Corporation engaged in the following transactions at the beginning of 2019: 1a. Prepare journal entries to record the 2019 transactions for the franchise. Assume the purchase was made on January 1, 2019. a. Purchased a Hogburger franchise for a 5-year, $60,000, 10% interest-bearing note. The franchise has an indefinite life providing the terms of the franchise are not violated. General Journal Instructions b. Sold a trade name for $50,000. The trade name had a carrying value of $5,000. c. Paid an advertising agency $60,000 for advertisements to promote a new trade name. The advertisements will begin in 2020. PAGE 1 d. Incurred legal fees of $5,000 to register a new trade name. e. Purchased the copyright to a new movie for $500,000. The movie is made during 2019 at a cost of $15 million. It will begin showing in 2020 and GENERAL JOURNAL is expected to gross $10 million during 2020, $20 million during 2021, and $10 million during 2022. POST. REF. DATE ACCOUNT TITLE DEBIT CREDIT Franchise 60,000.00 Required: 2 Notes Payable 60,000.00 1. Prepare journal entries to record the preceding transactions, including any appropriate adjusting entries for 2019. Adjusting Entries 2. Next Level With regard to the copyright in Transaction e, what factors should Byrd consider in selecting an amortization method? 4 Chart of Accounts 16. Prepare journal entries to record the 2019 transactions related to the trade name. CHART OF ACCOUNTS General Journal Instructions Byrd Corporation General Ledger DAGE 1 ASSETS REVENUE GENERAL JOURNAL 111 Cash 411 Sales Revenue DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 121 Accounts Receivable 881 Gain on Sale of Trade Name 125 Notes Receivable 2 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 153 Prepaid Advertising 511 Insurance Expense 171 Equipment 512 Utilities Expense 179 Accumulated Depreciation 521 Salaries Expense 6 183 Franchise 532 Bad Debt Expense 185 Copyright 540 Interest Expense 187 Trade Name 541 Depreciation Expense 559 Miscellaneous Expenses 1c. Prepare journal entries to record the 2019 transactions for the copyright, Assume the purchase was made on JJanuary 1, 2019. LIABILITIES 910 Income Tax Expense 211 Accounts Payable General Journal Instructions 221 Notes Payable 224 Interest Payable PAGE 1 231 Salaries Payable GENERAL JOURNAL EQUITY DATE ACCOUNT TITLE DEBIT POST. REF. CREDIT 311 Common Stock 331 Retained Earnings 2