Required 1Required 2Prepare the entries necessary for years 2019 through 2021 to reflect the above information. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)NoDateGeneral JournalDebitCredit1January 01, 2019 Patent1,400,000Cash1,400,000December 31, 201 Amortization expensePatentDecember 31, 202 Amortization expense4December 31, 202 FranchiseCashDecember 31, 202 Amortization expenseFranchise6.December 31, 202 Research and development expenseCash7December 31, 202 Amortization expensePatent Exercise 11-19 (Algo) Amortization [LO11-4, 11-5]Janes Company provided the following information on intangible assets:a. A patent was purchased from the Lou Company for $1,400,000 on January 1, 2019. Janes estimated the remaining useful life of thepatent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $490,000 when Lou sold it toJanes.b. During 2021, a franchise was purchased from the Rink Company for $640,000. The contractual life of the franchise is 10 years andJanes records a full year of amortization in the year of purchase.C. Janes incurred research and development costs in 2021 as follows:Materials and supplies$154,000194,00074,000Personne1Indirect costsTotal$422,000d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchasedfrom Lou is only five more years.Required:1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information.2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet.O Answer is not complete.Complete this question by entering your answers in the tabs below....< Prev10 of 16Next >

Name: Required 1Required 2Prepare the entries necessary for years 2019 thro
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Description: Required 1Required 2Prepare the entries necessary for years 2019 through 2021 to reflect the above information. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)NoDateGeneral JournalDebi

Solution:- 1)Preparation of journal entries as follows under:-

Business

Accounting

Required: 1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information. 2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet.

Required: 1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information. 2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet.

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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