Answered: On April 1, a patent with an estimated…

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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Question

On April 1, a patent with an estimated useful economic life of 12 years was acquired for $100,800. In addition, on December 31, it was estimated that goodwill of $27,500 was impaired.

a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank.

April 1	Patents	fill in the blank eea2f202506803f_2	fill in the blank eea2f202506803f_3
	Cash	fill in the blank eea2f202506803f_5	fill in the blank eea2f202506803f_6

b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank.

Dec. 31		fill in the blank 502bbf0b5fa3fbc_2	fill in the blank 502bbf0b5fa3fbc_3
		fill in the blank 502bbf0b5fa3fbc_5	fill in the blank 502bbf0b5fa3fbc_6

c. Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank.

Dec. 31		fill in the blank 40bfd9084fe9070_2	fill in the blank 40bfd9084fe9070_3
		fill in the blank 40bfd9084fe9070_5	fill in the blank 40bfd9084fe9070_6

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