On January 1, 2022, Oriole Company had a balance of $397,000 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions. Jan. 2 Purchased a patent (7-year life) $292,950. July 1 Sept. 1 (a) Your answer is correct. Acquired a 10-year franchise; expiration date July 1, 2032, $568,800. Research and development costs $181,500. Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date 1/2/22 + Account Titles and Explanation Patents Debit 292950 Credit

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2022, Oriole Company had a balance of $397,000 of goodwill on its balance sheet that resulted from the purchase of a
small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions.
Jan. 2 Purchased a patent (7-year life) $292,950.
July 1
Sept. 1
(a)
Your answer is correct.
Acquired a 10-year franchise; expiration date July 1, 2032, $568,800.
Research and development costs $181,500.
Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (Record entries
in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the
amounts.)
Date
1/2/22 +
Account Titles and Explanation
Patents
Debit
292950
Credit
Transcribed Image Text:On January 1, 2022, Oriole Company had a balance of $397,000 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions. Jan. 2 Purchased a patent (7-year life) $292,950. July 1 Sept. 1 (a) Your answer is correct. Acquired a 10-year franchise; expiration date July 1, 2032, $568,800. Research and development costs $181,500. Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date 1/2/22 + Account Titles and Explanation Patents Debit 292950 Credit
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