Journal entry worksheet Record the entry to reclassify various expenditures incorrectly charged to the intangible asset account. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general Journal
Journal entry worksheet Record the entry to reclassify various expenditures incorrectly charged to the intangible asset account. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general Journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hi there, can help with answering the attached questions, thanks so much.
![The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were
debited to one account called Intangible asset. A recap of the $207,500 balance in this account at the end of 2021 is as follows:
Date
Transaction
February 3 State incorporation fees and legal costs related to organizing the corporation
Fire insurance premium for three-year period
Purchased a copyright
Research and development costs
Legal fees for filing a patent on a new product resulting from an R&D project
Legal fee for successful defense of patent developed above
Entered into a 10-year franchise agreement with franchisor
Advertising costs
Total
March 1
March 15
April 30
June 15
September 38
October 13
Various
Required:
Prepare the necessary Journal entry to clear the Intangible asset account and to set up accounts for separate intangible assets, other
types of assets, and expenses Indicated by the transactions. (If no entry is required for a transaction/event, select "No Journal entry
required" in the first account field.)
View transaction list
Journal entry worksheet
<
Record the entry to reclassify various expenditures incorrectly charged to the
intangible asset account.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit Credit
Amount
$ 8,500
7,500
32,000
52,000
3,500
24,000
52,000
28,000
$207,500
View general Journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2Ff12e6449-e64f-474b-afca-55ea9f23aafb%2Fnrki2d_processed.png&w=3840&q=75)
Transcribed Image Text:The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were
debited to one account called Intangible asset. A recap of the $207,500 balance in this account at the end of 2021 is as follows:
Date
Transaction
February 3 State incorporation fees and legal costs related to organizing the corporation
Fire insurance premium for three-year period
Purchased a copyright
Research and development costs
Legal fees for filing a patent on a new product resulting from an R&D project
Legal fee for successful defense of patent developed above
Entered into a 10-year franchise agreement with franchisor
Advertising costs
Total
March 1
March 15
April 30
June 15
September 38
October 13
Various
Required:
Prepare the necessary Journal entry to clear the Intangible asset account and to set up accounts for separate intangible assets, other
types of assets, and expenses Indicated by the transactions. (If no entry is required for a transaction/event, select "No Journal entry
required" in the first account field.)
View transaction list
Journal entry worksheet
<
Record the entry to reclassify various expenditures incorrectly charged to the
intangible asset account.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit Credit
Amount
$ 8,500
7,500
32,000
52,000
3,500
24,000
52,000
28,000
$207,500
View general Journal
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