Oriole Corporation has the following selected transactions during the year ended December 31, 2021: Jan. 1 Mar. 1 Sept. 1 Purchased a copyright for $123,360 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Acquired a franchise with a contract period of nine years for $527,310; the expiration date is March 1, 2030. Paid cash of $40,370 and borrowed the remainder from the bank. Purchased a trademark for $71,360 cash. As the purchase was being finalized, spent $36,650 cash in legal fees to successfully defend the trademark in court.
Oriole Corporation has the following selected transactions during the year ended December 31, 2021: Jan. 1 Mar. 1 Sept. 1 Purchased a copyright for $123,360 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Acquired a franchise with a contract period of nine years for $527,310; the expiration date is March 1, 2030. Paid cash of $40,370 and borrowed the remainder from the bank. Purchased a trademark for $71,360 cash. As the purchase was being finalized, spent $36,650 cash in legal fees to successfully defend the trademark in court.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hi there,
How do i organize these entries?
Thanks
Transcribed Image Text:Prepare the entries to record the above transactions. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
(To record purchase of trademark)
(To record costs incurred to defend trademark)
Debit
I
Credit
Transcribed Image Text:Oriole Corporation has the following selected transactions during the year ended December 31, 2021:
Jan. 1
Mar.
1
Sept.
1
Purchased a copyright for $123,360 cash. The copyright has a useful life of six years and a remaining legal life of 30
years.
Acquired a franchise with a contract period of nine years for $527,310; the expiration date is March 1, 2030. Paid cash
of $40,370 and borrowed the remainder from the bank.
Purchased a trademark for $71,360 cash. As the purchase was being finalized, spent $36,650 cash in legal fees to
successfully defend the trademark in court.
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