Pronghorn Company, organized in 2020, has the following transactions related to intangible assets. 1/2/22 Purchased patent (8-year life) $592,000 4/1/22 Purchased a small compaly and as a result recorded goodwill. (indefinite life) 360,000 7/1/22 Acquired 13-year franchise; expiration date 7/1/2032 520,000 9/1/22 Incurred research and development costs 178,000 1. Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2022, recording any necessary amortization. (List all debit entries before credit entries. 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.) 2. Calculate ending balances as at 12/31/22.
Pronghorn Company, organized in 2020, has the following transactions related to intangible assets. 1/2/22 Purchased patent (8-year life) $592,000 4/1/22 Purchased a small compaly and as a result recorded goodwill. (indefinite life) 360,000 7/1/22 Acquired 13-year franchise; expiration date 7/1/2032 520,000 9/1/22 Incurred research and development costs 178,000 1. Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2022, recording any necessary amortization. (List all debit entries before credit entries. 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.) 2. Calculate ending balances as at 12/31/22.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pronghorn Company, organized in 2020, has the following transactions related to intangible assets.
| 1/2/22 | Purchased patent (8-year life) | $592,000 | ||
| 4/1/22 | Purchased a small compaly and as a result recorded |
360,000 | ||
| 7/1/22 | Acquired 13-year franchise; expiration date 7/1/2032 | 520,000 | ||
| 9/1/22 | Incurred research and development costs | 178,000 |
1. Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the
2. Calculate ending balances as at 12/31/22.
|
Ending balances
|
||
|---|---|---|
|
Patents
|
$enter a dollar amount | |
|
Goodwill
|
$enter a dollar amount | |
|
Franchises
|
$enter a dollar amount | |
|
Research and Development Expense
|
$enter a dollar amount |
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