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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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   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.)

 

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