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

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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What is the correct journal entry?
1. Compute for the carrying value of the intangible assets at December 31, 2019. 2. How much is the Net Income (Loss) of the company for the year ended December 31, 2019?
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112.
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