patent (7-year life) Purchased a small compaly and as a result recorded goodwill. (indeff Acquired 10-year franchise; expiration date 7/1/2032
patent (7-year life) Purchased a small compaly and as a result recorded goodwill. (indeff Acquired 10-year franchise; expiration date 7/1/2032
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kk152.

Transcribed Image Text:Attempt in Progress
Gill Company, organized in 2020, has the following transactions related to intangible assets.
1/2/22 Purchased patent (7-year life)
4/1/22
7/1/22
9/1/22
(a1)
Purchased a small compaly and as a result recorded goodwill. (indefinite life)
Acquired 10-year franchise; expiration date 7/1/2032
Incurred research and development costs
$595,000
360,000
480,000
185,000
Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of
December 31, 2022, recording any necessary amortization. (List all debit entries before credit entries. Credit account titles
are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order
presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts)
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