Swifty Company, organized in 2020, has the following transactions related to intangible assets.1/2/22 Purchased patent (5-year life) $385,0004/1/22 Purchased a small compaly and as a result recorded goodwill. (indefinite life) 360,0007/1/22 Acquired 12-year franchise; expiration date 7/1/2032 456,0009/1/22 Incurred research and development costs 194,000Prepare the necessary entries to record these intangibles (all costs incurred were for cash) and calculate ending balances as at 12/31/22. Calculate ending balances as at 12/31/22.Ending balancesPatents$Goodwill$FranchisesResearch and Development Expense%24%24%24 Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as ofDecember 31, 2022, recording any necessary amortization. (List all debit entries before credit entries. Credit account titles areautomatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Ifno entry is required, select "No Entry" for the account titles and enter O for the amounts.)DateAccount Titles and ExplanationDebitCredit>>>>

A balance sheet of a firm may report two types of non-current assets; 1) tangible assets and 2)…

Answered: Swifty Company, organized in 2020, has…

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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Swifty Company, organized in 2020, has the following transactions related to intangible assets.

1/2/22	Purchased patent (5-year life)	$385,000
4/1/22	Purchased a small compaly and as a result recorded goodwill. (indefinite life)	360,000
7/1/22	Acquired 12-year franchise; expiration date 7/1/2032	456,000
9/1/22	Incurred research and development costs	194,000

Prepare the necessary entries to record these intangibles (all costs incurred were for cash) and calculate ending balances as at 12/31/22.

Calculate ending balances as at 12/31/22.
Ending balances
Patents
$
Goodwill
$
Franchises
Research and Development Expense
%24
%24
%24

Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of
December 31, 2022, recording any necessary amortization. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If
no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
>
>
>
>

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