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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

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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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)
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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