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onrad Inc. purchased a patent for $2,900,000 for "a specialty line of patented switch plate covers and outlet plate covers specifically esigned to light up automatically when the power fails." Assume the switch plate patent was purchased January 1, 2020, and it is eing depreciated over a period of ten years. Assume that Conrad Inc. does not use an accumulated amortization account but instead harges amortization directly against the intangible asset account. equired: This part of the question is not part of your Connect assignment. Prepare the journal entries to record the purchase and amortization of the switch plate patent in 2020. (If no entry is required for a ansaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the purchase of patent. Note: Enter debits before credits. Event a Record entry General Journal Clear entry Debit Credit View general journal

onrad Inc. purchased a patent for $2,900,000 for "a specialty line of patented switch plate covers and outlet plate covers specifically esigned to light up automatically when the power fails." Assume the switch plate patent was purchased January 1, 2020, and it is eing depreciated over a period of ten years. Assume that Conrad Inc. does not use an accumulated amortization account but instead harges amortization directly against the intangible asset account. equired: This part of the question is not part of your Connect assignment. Prepare the journal entries to record the purchase and amortization of the switch plate patent in 2020. (If no entry is required for a ansaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the purchase of patent. Note: Enter debits before credits. Event a Record entry General Journal Clear entry Debit Credit View general journal

FINANCIAL ACCOUNTING
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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Conrad Inc. purchased a patent for $2,900,000 for "a specialty line of patented switch plate covers and outlet plate covers specifically designed to light up automatically when the power fails." Assume the switch plate patent was purchased January 1, 2020, and it is being depreciated over a period of ten years. Assume that Conrad Inc. does not use an accumulated amortization account but instead charges amortization directly against the intangible asset account. Required: 1. This part of the question is not part of your Connect assignment. 2. Prepare the journal entries to record the purchase and amortization of the switch plate patent in 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the purchase of patent. Note: Enter debits before credits. Event a Record entry General Journal Clear entry Debit Credit View general journal
Transcribed Image Text:Conrad Inc. purchased a patent for $2,900,000 for "a specialty line of patented switch plate covers and outlet plate covers specifically designed to light up automatically when the power fails." Assume the switch plate patent was purchased January 1, 2020, and it is being depreciated over a period of ten years. Assume that Conrad Inc. does not use an accumulated amortization account but instead charges amortization directly against the intangible asset account. Required: 1. This part of the question is not part of your Connect assignment. 2. Prepare the journal entries to record the purchase and amortization of the switch plate patent in 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the purchase of patent. Note: Enter debits before credits. Event a Record entry General Journal Clear entry Debit Credit View general journal
3. After a year of unsuccessful attempts to manufacture the switch plate covers, Conrad Inc. determined the patent was significantly impaired and its book value on January 1, 2020, was written off. Prepare the journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 Record the entry for impairment. Note: Enter debits before credits. Event a Record entry General Journal Clear entry Debit Credit View general journal
Transcribed Image Text:3. After a year of unsuccessful attempts to manufacture the switch plate covers, Conrad Inc. determined the patent was significantly impaired and its book value on January 1, 2020, was written off. Prepare the journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 Record the entry for impairment. Note: Enter debits before credits. Event a Record entry General Journal Clear entry Debit Credit View general journal
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