Pharoah Limited organized late in 2019 and set up a single account for all intangible assets. The following summary shows the entries in 2020 (all debits) that have been recorded in Intangible Assets since then: Jan. 2 Purchased patent (8-year life) 3 1 Mar. Apr. 1 July 1 Costs to search for new ways to apply patent that was purchased on Jan. 2 Purchased goodwill (indefinite life) Purchased franchise with 10-year life; expiration date July 1, 2030 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 Payment for copyright (5-year life) 1 Aug. 1 1 1 Sept 1 Research costs Purchased trademark (3-year life) Purchased customer list (2-year life) $338,C 21,00C 307,00 259,00 33,000 142,8C 14,40C 9,600 236,00 $1,360
Pharoah Limited organized late in 2019 and set up a single account for all intangible assets. The following summary shows the entries in 2020 (all debits) that have been recorded in Intangible Assets since then: Jan. 2 Purchased patent (8-year life) 3 1 Mar. Apr. 1 July 1 Costs to search for new ways to apply patent that was purchased on Jan. 2 Purchased goodwill (indefinite life) Purchased franchise with 10-year life; expiration date July 1, 2030 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 Payment for copyright (5-year life) 1 Aug. 1 1 1 Sept 1 Research costs Purchased trademark (3-year life) Purchased customer list (2-year life) $338,C 21,00C 307,00 259,00 33,000 142,8C 14,40C 9,600 236,00 $1,360
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 64E
Related questions
Question
![Pharoah Limited organized late in 2019 and set up a single account for all intangible assets. The following
summary shows the entries in 2020 (all debits) that have been recorded in Intangible Assets since then:
Jan. 2
3
1
Apr. 1
July 1
1
Mar.
Purchased patent (8-year life)
Costs to search for new ways to apply patent that was purchased on Jan. 2
Purchased goodwill (indefinite life)
Purchased franchise with 10-year life; expiration date July 1, 2030
Promotional costs to increase the future economic benefit of the goodwill that was
purchased on Apr. 1
Aug. 1 Payment for copyright (5-year life)
1 Purchased trademark (3-year life)
1 Purchased customer list (2-year life)
Sept 1 Research costs
$338,000
21,000
307,000
259,000
33,000
142,800
14,400
9,600
236,000
$1,360,8
00
Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct
types of intangibles.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ffe32ab-694b-455e-98f8-8fe38912aea8%2F3f45c91c-8569-4069-9b34-a74e6e3f9fc9%2Fd3e1vyq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pharoah Limited organized late in 2019 and set up a single account for all intangible assets. The following
summary shows the entries in 2020 (all debits) that have been recorded in Intangible Assets since then:
Jan. 2
3
1
Apr. 1
July 1
1
Mar.
Purchased patent (8-year life)
Costs to search for new ways to apply patent that was purchased on Jan. 2
Purchased goodwill (indefinite life)
Purchased franchise with 10-year life; expiration date July 1, 2030
Promotional costs to increase the future economic benefit of the goodwill that was
purchased on Apr. 1
Aug. 1 Payment for copyright (5-year life)
1 Purchased trademark (3-year life)
1 Purchased customer list (2-year life)
Sept 1 Research costs
$338,000
21,000
307,000
259,000
33,000
142,800
14,400
9,600
236,000
$1,360,8
00
Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct
types of intangibles.
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