Sarasota Company, organized in 2020, has the following transactions related to intangible assets. 1/2/20 Purchased patent (5-year life) $440,000 4/1/20 Goodwill purchased (indefinite life) 360,000 7/1/20 10-year franchise 320,000 9/1/20 Research and development costs 179,000 Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2020, recording any necessary amortization. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Sarasota Company, organized in 2020, has the following transactions related to intangible assets. 1/2/20 Purchased patent (5-year life) $440,000 4/1/20 Goodwill purchased (indefinite life) 360,000 7/1/20 10-year franchise 320,000 9/1/20 Research and development costs 179,000 Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2020, recording any necessary amortization. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sarasota Company, organized in 2020, has the following transactions related to intangible assets.
| 1/2/20 | Purchased patent (5-year life) | $440,000 | ||
| 4/1/20 | 360,000 | |||
| 7/1/20 | 10-year franchise | 320,000 | ||
| 9/1/20 | Research and development costs | 179,000 |
Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2020, recording any necessary amortization. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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