Marshall Company orgainzed in 2016 has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded durning 2017. 1/2/17 Purchased patent (8 year life) $350,000 4/1/17 Purchased goodwill(indefinite life) $360,000 7/1/17 Purchased franchise with 10-year life; exp. date 7/1/17 $450,000 8/1/17 Payment of copyright(5-year life) $156,000 9/1/17 Research and development cost $215,000 Instructions: Prepare the necessary entries to clear the Intangible Assest account and to set up separate accounts for distinct types of intangibnles. Make the entries as of December 31, 2017, recording any necessary amortization and rreflecting all balances accurately as of that date.(use straight-line amortization)
Marshall Company orgainzed in 2016 has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded durning 2017.
1/2/17 Purchased patent (8 year life) $350,000
4/1/17 Purchased
7/1/17 Purchased franchise with 10-year life; exp. date 7/1/17 $450,000
8/1/17 Payment of copyright(5-year life) $156,000
9/1/17 Research and development cost $215,000
Instructions: Prepare the necessary entries to clear the Intangible Assest account and to set up separate accounts for distinct types of intangibnles. Make the entries as of December 31, 2017, recording any necessary amortization and rreflecting all balances accurately as of that date.(use straight-line amortization)
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