how How can due entries?Intangibles: Balance Sheet Presentation and Income Statement EffectsBringle Company has provided information on intangible assets as follows:A patent was purchased from Lou Company for $1,845,000 on January 1, 2018. Bringle estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of $1,635,000 when Lou sold it to Bringle.During 2019, a franchise was purchased from Rink Company for $470,000. In addition, 6% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,000,000. Bringle estimates the useful life of the franchise to be 5 years and takes a full year's amortization in the year of purchase.Bringle incurred R&D costs in 2019 as follows: Materials and equipment$150,000Personnel130,000Indirect costs69,000 $349,000Bringle estimates that these costs will be recouped by December 31, 2020.On January 1, 2019, Bringle estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018, is only 10 years from January 1, 2019.Required:Prepare a schedule showing the intangibles section of Bringle's balance sheet at December 31, 2019.

We have the following information: A patent was purchased from Lou Company for $1,845,000 on…

Answered: Intangibles: Balance Sheet Presentation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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how How can due entries?

Intangibles: Balance Sheet Presentation and Income Statement Effects

Bringle Company has provided information on intangible assets as follows:

A patent was purchased from Lou Company for $1,845,000 on January 1, 2018. Bringle estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of $1,635,000 when Lou sold it to Bringle.
During 2019, a franchise was purchased from Rink Company for $470,000. In addition, 6% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,000,000. Bringle estimates the useful life of the franchise to be 5 years and takes a full year's amortization in the year of purchase.
Bringle incurred R&D costs in 2019 as follows:

Materials and equipment $150,000

Personnel 130,000

Indirect costs 69,000

$349,000

Bringle estimates that these costs will be recouped by December 31, 2020.
On January 1, 2019, Bringle estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018, is only 10 years from January 1, 2019.

Required:

Prepare a schedule showing the intangibles section of Bringle's balance sheet at December 31, 2019.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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