On January 1, 2025, Crane Company had a balance of $374,400 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 2025, the company had the following additional transactions. Jan. 2 Purchased a patent (5-year life) $291,200. July 1 Acquired a 9-year franchise; expiration date July 1, 2034, $561,600. Sept. 1 Research and development costs $192,400. Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (List debit entry before credit entry. 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 O for the amounts) Account Titles and Explanation Date Debit Credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2025, Crane Company had a balance of $374,400 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 2025, the company had the following additional transactions. Jan. 2 Purchased a patent (5-year life) $291,200. Acquired a 9-year franchise; expiration date July 1, 2034, $561,600. Research and development costs $192,400. 1 July Sept. 1 Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (List debit entry before credit entry. 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 O for the amounts.) Date Account Titles and Explanation Debit Credit.

On January 1, 2025, Crane Company had a balance of $374,400 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 2025, the company had the following additional transactions.
Jan. 2 Purchased a patent (5-year life) $291,200.
July 1 Acquired a 9-year franchise; expiration date July 1, 2034, $561,600.
Sept. 1 Research and development costs $192,400.
Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (List debit entry
before credit entry. 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 O for the amounts)
Account Titles and Explanation
Date
Debit
Credit
Transcribed Image Text:On January 1, 2025, Crane Company had a balance of $374,400 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 2025, the company had the following additional transactions. Jan. 2 Purchased a patent (5-year life) $291,200. July 1 Acquired a 9-year franchise; expiration date July 1, 2034, $561,600. Sept. 1 Research and development costs $192,400. Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (List debit entry before credit entry. 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 O for the amounts) Account Titles and Explanation Date Debit Credit
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