Part 1: On January 1, 2020, Mare Company acquired a copyright for $8,600,000 cash. The copyright isestimated to have a useful life of 10 years.Prepare all journal entries related to this copyright for the years 2020 to 2024.DateAccountDebitCredit01/01/2020Copyright8,600,000Cash8,600,00012/31/2020Amortization Expense860,000Сopyright860,00012/31/2021Amortization Expense860,000Copyright860,0004 of 13Chapter 12 Homework12/31/2022Amortization Expense860.000Copyright860,00012/31/2023Amortization Expense860,000Copyright860,00012/31/2024Amortization Expense860,000Copyright860,000What is the carrying value of the copyright on January 1, 2025?2$4,300,000Part 2: On January 2, 2025, the copyright has the following information:Expected future net cash flowsFair value$ 4,000,0003,200,000Prepare all journal entries related to the copyright for 2025.DateAccountDebitCredit01/02/2025Loss on Impairment of Intangible Assets1,100,000Copyright1,100,00012/31/2025Amortization Expense640,000Copyright640,000 Part 3: On December 31, 2026, the fair value of the copyright is $3,400,000.Prepare all journal entries related to the copyright for 2025, if necessary.DateAccountDebitCredit12/31/202612/31/2026

Step 1 Journal is the part of book keeping.

Part 3: On December 31, 2026, the fair value of the copyright is $3,400,000. Prepare all journal entries related to the copyright for 2025, if necessary. Date Account Debit Credit 12/31/2026 12/31/2026

Part 3: On December 31, 2026, the fair value of the copyright is $3,400,000. Prepare all journal entries related to the copyright for 2025, if necessary. Date Account Debit Credit 12/31/2026 12/31/2026

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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Question

Part 1: On January 1, 2020, Mare Company acquired a copyright for $8,600,000 cash. The copyright is
estimated to have a useful life of 10 years.
Prepare all journal entries related to this copyright for the years 2020 to 2024.
Date
Account
Debit
Credit
01/01/2020
Copyright
8,600,000
Cash
8,600,000
12/31/2020
Amortization Expense
860,000
Сopyright
860,000
12/31/2021
Amortization Expense
860,000
Copyright
860,000
4 of 13
Chapter 12 Homework
12/31/2022
Amortization Expense
860.000
Copyright
860,000
12/31/2023
Amortization Expense
860,000
Copyright
860,000
12/31/2024
Amortization Expense
860,000
Copyright
860,000
What is the carrying value of the copyright on January 1, 2025?
2$
4,300,000
Part 2: On January 2, 2025, the copyright has the following information:
Expected future net cash flows
Fair value
$ 4,000,000
3,200,000
Prepare all journal entries related to the copyright for 2025.
Date
Account
Debit
Credit
01/02/2025
Loss on Impairment of Intangible Assets
1,100,000
Copyright
1,100,000
12/31/2025
Amortization Expense
640,000
Copyright
640,000

Part 3: On December 31, 2026, the fair value of the copyright is $3,400,000.
Prepare all journal entries related to the copyright for 2025, if necessary.
Date
Account
Debit
Credit
12/31/2026
12/31/2026

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