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
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education