Marigold Corp., organized in 2022, has the following transactions related to intangible assets. 1/2/22 Purchased patent (7-year life) $528,500 4/1/22 Goodwill purchased (indefinite life) 360,000 7/1/22 Acquired 10-year franchise; expiration date 7/1/2032 380,000 9/1/22 Incurred research and development costs 171,000 Prepare the necessary entries to record these transactions. All costs incurred were for cash. Make the adjusting entries as of December 31, 2022, recording any necessary amortization.
Marigold Corp., organized in 2022, has the following transactions related to intangible assets. 1/2/22 Purchased patent (7-year life) $528,500 4/1/22 Goodwill purchased (indefinite life) 360,000 7/1/22 Acquired 10-year franchise; expiration date 7/1/2032 380,000 9/1/22 Incurred research and development costs 171,000 Prepare the necessary entries to record these transactions. All costs incurred were for cash. Make the adjusting entries as of December 31, 2022, recording any necessary amortization.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I could really use some help with the last part of this problem it's been giving me a lot of trouble.
Marigold Corp., organized in 2022, has the following transactions related to intangible assets.
| 1/2/22 | Purchased patent (7-year life) | $528,500 | ||
| 4/1/22 | 360,000 | |||
| 7/1/22 | Acquired 10-year franchise; expiration date 7/1/2032 | 380,000 | ||
| 9/1/22 | Incurred research and development costs | 171,000 |
Prepare the necessary entries to record these transactions. All costs incurred were for cash. Make the
Transcribed Image Text:Account Titles and Explanation
Debit
Credit
Patents
528,500
Cash
528,500
Goodwill
360,000
Cash
360,000
Franchises
380,000
Cash
380,000
Research and Development Expense
171,000
Cash
171,000
Amortization Expense
94,500
Patents
75,500
Franchises
19,000
Transcribed Image Text:Calculate ending balances as at 12/31/22.
Ending balances
Patents
$
Goodwill
Franchises
Research and Development Expense
Amortization Expense
$
%24
%24
%24
%24
%24
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