Pharoah Corporation has the following selected transactions during the year ended December 31, 2021: Jan. 1 Purchased a copyright for $128,160 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Mar. 1 Sept. 1 Acquired a franchise with a contract period of nine years for $548,910; the expiration date is March 1, 2030. Paid of $41,980 and borrowed the remainder from the bank. Date Purchased a trademark for $74,360 cash. As the purchase was being finalized, spent $36,630 cash in legal fees to successfully defend the trademark in court. Prepare the entries to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.) Account Titles and Explanation (To record purchase of trademark). Debit Credit

Pharoah Corporation has the following selected transactions during the year ended December 31, 2021: Jan. 1 Purchased a copyright for $128,160 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Mar. 1 Sept. 1 Acquired a franchise with a contract period of nine years for $548,910; the expiration date is March 1, 2030. Paid of $41,980 and borrowed the remainder from the bank. Date Purchased a trademark for $74,360 cash. As the purchase was being finalized, spent $36,630 cash in legal fees to successfully defend the trademark in court. Prepare the entries to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.) Account Titles and Explanation (To record purchase of trademark). Debit Credit

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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Pharoah Corporation has the following selected transactions during the year ended December 31, 2024: Jan. 1 Purchased a copyright for $128, 160 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Mar. 1 Acquired a franchise with a contract period of nine years for $548,910; the expiration date is March 1, 2033. Paid cash of $41,980 and borrowed the remainder from the bank. Sept. 1 Purchased a trademark with an indefinite life for $74,360 cash. As the purchase was being finalized, spent $36, 630 cash in legal fees to successfully defend the trademark in court. Dec. 31 Purchased an advertising agency for $634,000 cash. The agency's only assets reported on its statement of financial position immediately before the purchase were accounts receivable of $56, 500, furniture of $167,000, and leasehold improvements of $314,000. Pharoah hired an independent appraiser who estimated that the fair value of these assets was accounts receivable $56, 500,…
The following selected transactions relate to liabilities of Chicago Glass Corporation for 2024. Chicago's fiscal year ends on December 31. On January 15, Chicago received $7,400 from Henry Construction toward the purchase of $70,000 of plate glass to be delivered on February 6. On February 3, Chicago received $7,100 of refundable deposits relating to containers used to transport glass components. On February 6, Chicago delivered the plate glass to Henry Construction and received the balance of the purchase price. First quarter credit sales totaled $740,000. The state sales tax rate is 4% and the local sales tax rate is 2%. Required: Prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
American Food Services, Incorporated, acquired a packaging machine from Barton and Barton Corporation. . Barton and Barton completed construction of the machine on January 1, 2024. In payment for the $4.9 million machine, American Food Services Issued a four-year Installment note to be paid in four equal payments at the end of each year. • The payments Include Interest at the rate of 12%. Required: 1. Prepare the journal entry for American Food Services purchase of the machine on January 1, 2024. 2. Prepare an amortization schedule for the four-year term of the installment note. 3. Prepare the journal entry for the first installment payment on December 31, 2024. 4. Prepare the Journal entry for the third Installment payment on December 31, 2026. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) · Complete this question by entering your answers in the tabs below. Req 2 Req 1 3 and 4 Prepare an amortization schedule…
Question bord Date an 1 ept. 1 Mar. 1 ept. 1 Question 6 of 6 K.31 ept. 1 ✓ Account Titles and Explanation Cost of Goods Sold Cash Cash expenses cash Bank Loan Payable Cash Trademarks (To record purchase of trademark) Cash Trademarks (To record purchase of trademark) Trademarks (To record costs incurred to defend trademark) Advertising Expense Accounts Receivable Furniture Leasehold Improvements Cash Debit 117480 500850 106340 106340 106340 640000 Credit 117400 462000 106340 306340 38820 106340 106340 10000 58000 170000 320000 92000 P SUP
Murphy Company purchased a new machine for $120,000 on December 31, 2020. They obtained a loan at the bank to finance the purchase. The terms of the loan were: 5 years, 5% interest, annual payments of principal and interest on December 31 of each year. a. Using the table provided, calculate the annual payment on the loan. b. Record the purchase of the new machine on December 31, 2020. c. Record the loan payment on December 31, 2021. d. Record the loan payment on December 31, 2022. d. Calculate the loan balance for December 31, 2022 after the payment. a. Using the table below, calculate the annual payment on the loan. Loan Amount…
Flounder Corporation purchases a patent from Shamrock Inc. on July 1, 2017, for $260,000. The patent has a remaining legal life of 9 years. Flounder estimates the patent will have a useful life of 4 years, based on expected product innovations in the market. Prepare Flounder's journal entries to record the purchase of the patent and 2017 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.) Account Titles and Explanation Debit Credit (To record purchase of patents) (To record amortization of patents)
Bleach Manufacturing purchased a patent from Blond Inc. for $30,000 on January 1, 2023. The patent has 6 years remaining on its term and is expected to bring in revenues to the company for the whole six years. The entry to record one year's amortization for the year ending December 31, 2023, is: Select one: a. Debit Accumulated Amortization-Patents $30,000; credit Amortization Expense-Patents $30,000 b. Debit Accumulated Amortization-Patents $5,000; credit Amortization Expense-Patents $5,000 O c. Debit Amortization Expense-Patents $5,000; credit Accumulated Amortization-Patents $5,000 O d. Debit Amortization Expense-Patents $30,000; credit Accumulated Amortization-Patents $30,000
The company purchased a piece of Equipment on 12/1/2023 for use in its business operations. The company financed this purchase 100% and began using the Equipment immediately. The details of the loan are below: Amount $100,000.00 Interest rate 8% Loan period (months) 24 Payment amount $4, 522.73 Start Date 12/1/23 1. explain why an amortization schedule is important and create one 2. Create the journal entry required to initially record this loan. 3. Create any adjusting entries needed at 12/31/2023. 4. Create the journal entry to record the first payment (assume a 1/1/2024 due date)
On June 1, 2024, Tech Company purchased a patent for $252,000 cash. Although the patent gives legal protection for 20 years, the patent is expected to be used for only six years. Read the requirements. Requirement 1. Journalize the purchase of the patent. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Credit Date Accounts and Explanation Debit June 1 Requirements 1. Journalize the purchase of the patent. 2. Journalize the amortization expense for the year ended December 31, 2024. Assume straight-line amortization. Print Done X
Vania Magazines started construction of a warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2019, and completed the building on December 31, 2019. During the construction period, Vania has the following debt obligations outstanding. Construction loan—12% interest, payable semiannually, issued December 31, 2018 $2,000,000 Short-term loan—10% interest, payable monthly, and principal payable at maturity, on May 30, 2020 1,400,000 Long-term loan—11% interest, payable on January 1 of each year; principal payable on January 1, 2022 1,000,000 Total cost amounted to $5,200,000, and the weighted average of accumulated expenditures was $3,500,000.Jane Esplanade, the president of the company, has been shown the costs associated with this construction project and capitalized on the balance sheet. She is bothered by the “avoidable interest” included in the cost. She argues that, first, all the interest is unavoidable—no one lends money…
Presented below is information related to copyrights owned by Carla Vista Company at December 31, 2020. Cost $8,630,000 Carrying amount 4,480,000 Expected future net cash flows 4,140,000 Fair value 3,330,000 Assume that Carla Vista Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Prepare the journal entry to record amortization expense for 2021 related to the copyrights.
On May 1, 2014 Barton Corporation purchased for cash of $37.500 a patent with a useful ife of 10 years, Give the entries to record: a. The purchase of the patent. b. The amortization on December 31, 2014 (calculated to the nearest whole month). Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format ddimmm (1e. January 15 would be 15/Jan). Ensure accuracy in your calculations and round only your final answer to the nearest whole dollar, Date General Journal Account/Explanation Page GJ2 F Debit Credit