The Intanglble assets and goodwlll reported by Ivanhoe Corporatlon at December 31, 2020, follow:Copyrights (#1)$35,740Less: Accumulated amortlzatlon17.870$ 17,870Trademarks50,390Gంoరnll119,060Total$ 187,320A copyright (#1) was acqulred on January 1, 2019, and has a useful life of four years. The trademarks were acqulred on January 1,2017, and are expected to have an Indefinlte lfe. The company has a December 31 year end and prepares adjusting Journal entrlesannually.The following cash transactlons may have affected Intanglble assets and goodwll during 2o21:Jan.Pald S 6,920 In legal costs to successfully defend the trademarks agalnet Infringement by another company.JulyDeveloped a newproduct, Incurring 5 201,940 In research and S 49.500 In development costs with probablefueure benefits. The product Is expected to havea useful life of 18 years,1.Pald 5 55,670 to a popular hockey player to appear In commerdlals advertising the company's products. Thecommerclals will alrIn early September.Sept.1.Oct.Acculred another copyright (#2) forS159000 The new copyright has 2 Useful ife of sx years.Determined the falr value ofthe goodwll tobe 3 86.270. There was no Indication that the copyrights ortrademarkevvereImpaired,Dec.31 Prepare Journal entrles torecord the above transactlons. (List all debit entries before credit entries. Credit account titles areautomatically Indented whinghe amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titlesand enter 0for the amounts. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebit(To record research expense)(To record development costs)

Journal Entry The purpose of preparing the journal entry to enter the required transaction into both…

The following cash transactions may have affected Intanglble assets and goodwill during 2021: Jan. Pald $ 6,920 In legal costs to successfully defend the trademarks agalnst Infringement by another company. Developed a new product, Ineurring $ 201,940 In research and $ 49,500 In development costs with probable future benefits. The product Is expected to have a useful life of 18 years. July 1. Pald $ 55,670 toa popular hoekey player to appear In commerelals advertlsing the company's products. The commerclals wll alr In early September. Sept. Oct. Acqulred another copyright (#2) for $ 159,000. The new copyright has a useful Ilfe of sbx years. Determined the falr value of the goodwill to be 3 86.270. There was no Indicatlon that the copyrights or trademarks were Impaired. Dec. 31

The following cash transactions may have affected Intanglble assets and goodwill during 2021: Jan. Pald $ 6,920 In legal costs to successfully defend the trademarks agalnst Infringement by another company. Developed a new product, Ineurring $ 201,940 In research and $ 49,500 In development costs with probable future benefits. The product Is expected to have a useful life of 18 years. July 1. Pald $ 55,670 toa popular hoekey player to appear In commerelals advertlsing the company's products. The commerclals wll alr In early September. Sept. Oct. Acqulred another copyright (#2) for $ 159,000. The new copyright has a useful Ilfe of sbx years. Determined the falr value of the goodwill to be 3 86.270. There was no Indicatlon that the copyrights or trademarks were Impaired. Dec. 31

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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