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Problem 12-05 Metlock Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $800,000 cash for Old Master. At the time, Old Master's balance sheet reported assets of $630,000 and liabilities of $190,000 (thus owners' equity was $440,000). The fair value of Old Master's assets is estimated to be $820,000. Included in the assets is the Old Master trade name with a fair value of $11,000 and a copyright on some instructional books with a fair value of $33,600. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years. Your answer is correct. Prepare the intangible assets section of Metlock Golf Inc. at December 31, 2019. M Trade Names M Copyrights 3 Goodwill M METLOCK GOLF INC. Intangibles Section of Balance Sheet December 31, 2019 Total Intangible Assets Amortization expense ✓ 420 11000 33180 170000 How much amortization expense is included in Metlock income for the year ended December 31, 2019? 214180

Problem 12-05 Metlock Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $800,000 cash for Old Master. At the time, Old Master's balance sheet reported assets of $630,000 and liabilities of $190,000 (thus owners' equity was $440,000). The fair value of Old Master's assets is estimated to be $820,000. Included in the assets is the Old Master trade name with a fair value of $11,000 and a copyright on some instructional books with a fair value of $33,600. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years. Your answer is correct. Prepare the intangible assets section of Metlock Golf Inc. at December 31, 2019. M Trade Names M Copyrights 3 Goodwill M METLOCK GOLF INC. Intangibles Section of Balance Sheet December 31, 2019 Total Intangible Assets Amortization expense ✓ 420 11000 33180 170000 How much amortization expense is included in Metlock income for the year ended December 31, 2019? 214180

FINANCIAL ACCOUNTING
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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Your answer is partially correct. Try again. Prepare the journal entry to record amortization expense for 2020. Prepare the intangible assets section of Metlock Golf Inc. at December 31, 2020. (No impairments are required to be recorded in 2020.) (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 0 for the amounts.) Account Titles and Explanation Amortization Expense x= Intangible Assets x Debit 420 x METLOCK GOLF INC. Intangibles Section of Balance Sheet December 31, 2020 |x Credit 420
Transcribed Image Text:Your answer is partially correct. Try again. Prepare the journal entry to record amortization expense for 2020. Prepare the intangible assets section of Metlock Golf Inc. at December 31, 2020. (No impairments are required to be recorded in 2020.) (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 0 for the amounts.) Account Titles and Explanation Amortization Expense x= Intangible Assets x Debit 420 x METLOCK GOLF INC. Intangibles Section of Balance Sheet December 31, 2020 |x Credit 420
Problem 12-05 Metlock Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $800,000 cash for Old Master. At the time, Old Master's balance sheet reported assets of $630,000 and liabilities of $190,000 (thus owners' equity was $440,000). The fair value of Old Master's assets is estimated to be $820,000. Included in the assets is the Old Master trade name with a fair value of $11,000 and a copyright on some instructional books with a fair value of $33,600. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years. Prepare the intangible assets section of Metlock Golf Inc. at December 31, 2019. Your answer is correct. Trade Names ✓ Copyrights ✓ Goodwill METLOCK GOLF INC. Intangibles Section of Balance Sheet December 31, 2019 Total Intangible Assets Amortization expense ✓ 420 ✓ |✓ 11000 33180 170000 How much amortization expense is included in Metlock income for the year ended December 31, 2019? 214180
Transcribed Image Text:Problem 12-05 Metlock Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $800,000 cash for Old Master. At the time, Old Master's balance sheet reported assets of $630,000 and liabilities of $190,000 (thus owners' equity was $440,000). The fair value of Old Master's assets is estimated to be $820,000. Included in the assets is the Old Master trade name with a fair value of $11,000 and a copyright on some instructional books with a fair value of $33,600. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years. Prepare the intangible assets section of Metlock Golf Inc. at December 31, 2019. Your answer is correct. Trade Names ✓ Copyrights ✓ Goodwill METLOCK GOLF INC. Intangibles Section of Balance Sheet December 31, 2019 Total Intangible Assets Amortization expense ✓ 420 ✓ |✓ 11000 33180 170000 How much amortization expense is included in Metlock income for the year ended December 31, 2019? 214180
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