Sage Hill Ltd., follows IFRS and was organized in 2022. Sage Hill provided you with the following information. 1. Purchased a licence for $19,200 on July 1, 2022. The licence gives Sage Hill exclusive rights to sell its services in the province and will expire on July 1, 2030. 2. Purchased a patent on January 2, 2023, for $36,600. It is estimated to have a 5-year life. 3. On April 1, 2023, Sage Hill purchased a small circuit board manufacturer for $316,000. Goodwill recorded in the transaction was $84,000. 4. On July 1, 2023, legal fees for the successful defense of the patent purchased on January 2, 2023, were $12,420. 5. Research and development costs incurred as of December 31, 2023, were $75,000. Prepare the journal entries and any year end adjusting entry (ies) related to the patent during 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,125.) Date Account Titles and Explanation Jan. 2, 2023 Intangible Assets - Patents Cash Debit 13350000 July 1, 2023 Intangible Assets - Patents 12420 Cash Cash Dec. 31, 2023 Loss on Impairment Accumulated Impairment Losses - Licences × Your answer is incorrect. What is the amount to be reported for intangible assets on the SFP at December 31, 2022. Intangible assets eTextbook and Media × Your answer is incorrect. 19200 1100 Credit 13350000 12420 1100 What is the amount to be reported for intangible assets on the SFP at December 31, 2023. (Round answers to O decimal places, e.g. 5,125.) Intangible assets +A $ 125280
Sage Hill Ltd., follows IFRS and was organized in 2022. Sage Hill provided you with the following information. 1. Purchased a licence for $19,200 on July 1, 2022. The licence gives Sage Hill exclusive rights to sell its services in the province and will expire on July 1, 2030. 2. Purchased a patent on January 2, 2023, for $36,600. It is estimated to have a 5-year life. 3. On April 1, 2023, Sage Hill purchased a small circuit board manufacturer for $316,000. Goodwill recorded in the transaction was $84,000. 4. On July 1, 2023, legal fees for the successful defense of the patent purchased on January 2, 2023, were $12,420. 5. Research and development costs incurred as of December 31, 2023, were $75,000. Prepare the journal entries and any year end adjusting entry (ies) related to the patent during 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,125.) Date Account Titles and Explanation Jan. 2, 2023 Intangible Assets - Patents Cash Debit 13350000 July 1, 2023 Intangible Assets - Patents 12420 Cash Cash Dec. 31, 2023 Loss on Impairment Accumulated Impairment Losses - Licences × Your answer is incorrect. What is the amount to be reported for intangible assets on the SFP at December 31, 2022. Intangible assets eTextbook and Media × Your answer is incorrect. 19200 1100 Credit 13350000 12420 1100 What is the amount to be reported for intangible assets on the SFP at December 31, 2023. (Round answers to O decimal places, e.g. 5,125.) Intangible assets +A $ 125280
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Sage Hill Ltd., follows IFRS and was organized in 2022. Sage Hill provided you with the following information.
1.
Purchased a licence for $19,200 on July 1, 2022. The licence gives Sage Hill exclusive rights to sell its services in the province and will expire on July 1, 2030.
2.
Purchased a patent on January 2, 2023, for $36,600. It is estimated to have a 5-year life.
3.
On April 1, 2023, Sage Hill purchased a small circuit board manufacturer for $316,000. Goodwill recorded in the transaction was $84,000.
4.
On July 1, 2023, legal fees for the successful defense of the patent purchased on January 2, 2023, were $12,420.
5.
Research and development costs incurred as of December 31, 2023, were $75,000.
Prepare the journal entries and any year end adjusting entry (ies) related to the patent during 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,125.)
Date
Account Titles and Explanation
Jan. 2, 2023
Intangible Assets -
Patents
Cash
Debit
13350000
July 1, 2023
Intangible Assets - Patents
12420
Cash
Cash
Dec. 31, 2023
Loss on Impairment
Accumulated Impairment Losses - Licences
× Your answer is incorrect.
What is the amount to be reported for intangible assets on the SFP at December 31, 2022.
Intangible assets
eTextbook and Media
× Your answer is incorrect.
19200
1100
Credit
13350000
12420
1100
What is the amount to be reported for intangible assets on the SFP at December 31, 2023. (Round answers to O decimal places, e.g. 5,125.)
Intangible assets
+A
$
125280
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