On January 1, 2022, Sandhill Co. had a balance of $411,000 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 July 1 Sept. 1 Purchased a patent (7-year life) $307,650. Acquired a 9-year franchise; expiration date July 1, 2,031, $576,000. Research and development costs $178,500.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 1, 2022, Sandhill Co. had a balance of $411,000 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) $307,650.
July 1
Sept. 1
Acquired a 9-year franchise; expiration date July 1, 2,031, $576,000.
Research and development costs $178,500.
Transcribed Image Text:On January 1, 2022, Sandhill Co. had a balance of $411,000 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) $307,650. July 1 Sept. 1 Acquired a 9-year franchise; expiration date July 1, 2,031, $576,000. Research and development costs $178,500.
Your answer is partially correct.
Make an entry as of December 31, 2022, recording any necessary amortization. (Round answers to O decimal places, e.g. 125. 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 O for the amounts.)
Account Titles and Explanation
Franchise
eTextbook and Media
List of Accounts
Save for later
Debit
Credit
Attomater of ed
Transcribed Image Text:Your answer is partially correct. Make an entry as of December 31, 2022, recording any necessary amortization. (Round answers to O decimal places, e.g. 125. 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 O for the amounts.) Account Titles and Explanation Franchise eTextbook and Media List of Accounts Save for later Debit Credit Attomater of ed
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