Can someone please help with this study guide question it’s also asks for ending balance of patents,goodwill, franchises, research and development expense, and amortization expense ### Pina Colada Corp. Intangible Assets Transactions Overview (2022)Pina Colada Corp., organized in 2022, has recorded the following transactions concerning intangible assets:- **1/2/22**: Purchased patent (7-year life) - $567,000- **4/1/22**: Purchased goodwill (indefinite life) - $360,000- **7/1/22**: Acquired 10-year franchise; expiration date 7/1/2032 - $490,000- **9/1/22**: Incurred research and development costs - $176,500### Journal Entries and Amortization Requirements**Instructions**: Prepare the necessary journal entries to record these transactions. All incurred costs were paid in cash. Make the necessary adjusting entries as of December 31, 2022, which include recording any required amortization.**Important Notes**:- Credit account titles are automatically indented when an amount is entered.- Do not manually indent.- Record journal entries in the order presented.- If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.#### Journal Entry Template- **Date**: Enter the transaction date.- **Account Titles and Explanation**: Provide the accounts affected and a brief description.- **Debit/Credit**: Specify the amounts to be debited or credited.##### Example Entry Format:| Date | Account Titles and Explanation | Debit | Credit ||---------|--------------------------------|--------|--------|| 1/2/22 | [Account Details] | [Amt.] | [Amt.] || ... | ... | ... | ... |Complete the entries in the provided format ensuring accuracy and proper accounting principles are adhered to. **Accounting Journal Template Overview**This image displays a template for recording financial transactions in an accounting journal. Here's a detailed explanation of its structure:1. **Columns:** - **Date:** This section allows users to input the date of each transaction. A dropdown menu is available for selecting dates, with entries such as 1/2/22, 4/1/22, 7/1/22, 9/1/22, and 12/31/22. - **Account Titles and Explanation:** This field is for specifying the accounts affected by the transaction and providing a brief explanation of the transaction's nature. - **Debit:** This column is designated for entering the amounts to be debited. - **Credit:** In this column, users can record the amounts to be credited.2. **Rows:** - The template displays multiple rows, indicating space for recording several transactions.This format aids in maintaining a clear and organized record of financial transactions by ensuring each entry provides essential details, including date, account information, and financial amounts (debits and credits).

Intangible assets, as the name suggest are assets which cannot be seen, felt or touched. Basically these are assets which can entail significant future economic benefit to the entity but are not visible. Like tangible assets, intangible assets too are amortized over their useful lifeDate Account Titles and Explanation Debit Credit Calculations 1/2/22 Patent $567,000 Given Cash $567,000 4/1/22 Goodwill $360,000 Given Cash $360,000 7/1/22 Franchise $490,000 Given Cash $490,000 9/1/22 Research and Development Expense $176,500 Given Cash $176,500 12/31/22 Amortization expense $105,500 Patent $81,000 =$567,000/7 Franchise $24,500 =$490,000/10 x 6/12Ending balances Balance($) Patents $486,000 =$567,000-$81,000 Goodwill $360000 Franchises $465,500 =$490,000-$24,500 Research and Development Expense $176,500

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Pina Colada Corp., organized in 2022, has the following transactions related to intangible assets. 1/2/22 Purchased patent (7-year life) $567,000 4/1/22 Goodwill purchased (indefinite life) 360,000 7/1/22 Acquired 10-year franchise; expiration date 7/1/2032 490,000 9/1/22 Incurred research and development costs 176,500 Prepare the necessary entries to record these transactions. All costs incurred were for cash. Make the adjusting entries as of December 31, 2022, recording any necessary amortization. (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.)

Pina Colada Corp., organized in 2022, has the following transactions related to intangible assets. 1/2/22 Purchased patent (7-year life) $567,000 4/1/22 Goodwill purchased (indefinite life) 360,000 7/1/22 Acquired 10-year franchise; expiration date 7/1/2032 490,000 9/1/22 Incurred research and development costs 176,500 Prepare the necessary entries to record these transactions. All costs incurred were for cash. Make the adjusting entries as of December 31, 2022, recording any necessary amortization. (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.)

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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Can someone please help with this study guide question it’s also asks for ending balance of patents,goodwill, franchises, research and development expense, and amortization expense

### Pina Colada Corp. Intangible Assets Transactions Overview (2022)

Pina Colada Corp., organized in 2022, has recorded the following transactions concerning intangible assets:

- **1/2/22**: Purchased patent (7-year life) - $567,000
- **4/1/22**: Purchased goodwill (indefinite life) - $360,000
- **7/1/22**: Acquired 10-year franchise; expiration date 7/1/2032 - $490,000
- **9/1/22**: Incurred research and development costs - $176,500

### Journal Entries and Amortization Requirements

**Instructions**: Prepare the necessary journal entries to record these transactions. All incurred costs were paid in cash. Make the necessary adjusting entries as of December 31, 2022, which include recording any required amortization.

**Important Notes**:
- Credit account titles are automatically indented when an amount is entered.
- Do not manually indent.
- Record journal entries in the order presented.
- If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.

#### Journal Entry Template

- **Date**: Enter the transaction date.
- **Account Titles and Explanation**: Provide the accounts affected and a brief description.
- **Debit/Credit**: Specify the amounts to be debited or credited.

##### Example Entry Format:

| Date | Account Titles and Explanation | Debit | Credit |
|---------|--------------------------------|--------|--------|
| 1/2/22 | [Account Details] | [Amt.] | [Amt.] |
| ... | ... | ... | ... |

Complete the entries in the provided format ensuring accuracy and proper accounting principles are adhered to.

**Accounting Journal Template Overview**

This image displays a template for recording financial transactions in an accounting journal. Here's a detailed explanation of its structure:

1. **Columns:**
- **Date:** This section allows users to input the date of each transaction. A dropdown menu is available for selecting dates, with entries such as 1/2/22, 4/1/22, 7/1/22, 9/1/22, and 12/31/22.
- **Account Titles and Explanation:** This field is for specifying the accounts affected by the transaction and providing a brief explanation of the transaction's nature.
- **Debit:** This column is designated for entering the amounts to be debited.
- **Credit:** In this column, users can record the amounts to be credited.

2. **Rows:**
- The template displays multiple rows, indicating space for recording several transactions.

This format aids in maintaining a clear and organized record of financial transactions by ensuring each entry provides essential details, including date, account information, and financial amounts (debits and credits).

Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).

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