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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

FINANCIAL ACCOUNTING
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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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
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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