The following transactions involving intangible assets of Blossom Corporation occurred on or near December 31, 2020.1. Minton paid Grand Company $360,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Blossom is in business. 2. Blossom spent $540,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. 3. In January, 2021, Blossom's application for a patent (#2 above) was granted. Legal and registration costs incurred were $189,000. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years. 4. Blossom incurred $144,000 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2024. 5. Blossom incurred $432,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $226,800, is deemed worthless. 6. Blossom paid Sneed Laboratories $93,600 for research and development work performed by Sneed under contract for Blossom. The benefits are expected to last six years. 1). Prepare journal entries for on the date of transaction.2). Prepare journal entry (ies) for on December 31, 2021 to record any resultant amortization

Journal entries are used to record the business transactions in the accounting system for an…

Answered: journal entries

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following transactions involving intangible assets of Blossom Corporation occurred on or near December 31, 2020.

1.		Minton paid Grand Company $360,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Blossom is in business.
2.		Blossom spent $540,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful.
3.		In January, 2021, Blossom's application for a patent (#2 above) was granted. Legal and registration costs incurred were $189,000. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years.
4.		Blossom incurred $144,000 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2024.
5.		Blossom incurred $432,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $226,800, is deemed worthless.
6.		Blossom paid Sneed Laboratories $93,600 for research and development work performed by Sneed under contract for Blossom. The benefits are expected to last six years.

1). Prepare journal entries for on the date of transaction.

2). Prepare journal entry (ies) for on December 31, 2021 to record any resultant amortization

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