Pharoah Company, organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025. 1/2/25 4/1/25 7/1/25 8/1/25 9/1/25 (a1) Purchased patent (B-year life) Purchase goodwill (indefinite life) Purchased franchise with 10-year life; expiration date 7/1/35 Payment of copyright (5-year life) Research and development costs Your answer is correct. Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when 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. List all debit entries before credit entries) Account Titles and Explanation Patents Goodwill Franchises Copyrights Research and Development Expense $356,800 356,000 436,000 163,200 226,000 $1,538,000 Intangible Assets Debit 356800 356000 436000 163200 226000 Credit QOOOOO 1539000
Pharoah Company, organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025. 1/2/25 4/1/25 7/1/25 8/1/25 9/1/25 (a1) Purchased patent (B-year life) Purchase goodwill (indefinite life) Purchased franchise with 10-year life; expiration date 7/1/35 Payment of copyright (5-year life) Research and development costs Your answer is correct. Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when 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. List all debit entries before credit entries) Account Titles and Explanation Patents Goodwill Franchises Copyrights Research and Development Expense $356,800 356,000 436,000 163,200 226,000 $1,538,000 Intangible Assets Debit 356800 356000 436000 163200 226000 Credit QOOOOO 1539000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Pharoah Company, organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit
entries that have been recorded during 2025.
1/2/25 Purchased patent(B-year life)
4/1/25
Purchase goodwill (indefinite life)
Purchased franchise with 10-year life; expiration date 7/1/35
Payment of copyright (5-year life)
Research and development costs
7/1/25
8/1/25
9/1/25
(a1)
Your answer is correct.
Account Titles and Explanation
Patents
Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of
intangibles. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.)
Goodwill
Franchises
Copyrights
Research and Development Expense
Intangible Assets
$356,800
356,000
436,000
163,200
226,000
$1,538,000
Debit
356800
356000
436000
163200
226000
Credit
1538000

Transcribed Image Text:Make the entry as of December 31, 2025, recording any necessary amortization. (Credit account titles are automatically indented
when 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. List all debit entries before credit entries.)
Account Titles and Explanation
Debit
Credit
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