What are the answers to Required 1a (goodwill amortization Journal Entry(, 1b (amortization of patent Journey Entry), 1c (amortization of franchise Journal Entry), and to Required 2 (fill in the Partial Balance Sheet)? The following information concerns the intangible assets of Epstein Corporation:a. On June 30, 2021, Epstein completed the acquisition of the Johnstone Corporation for $2,180,000 in cash. Thefair value of the net identifiable assets of Johnstone was $1,850,000.b. Included in the assets purchased from Johnstone was a patent that was valued at $84,800. The remaining legal lifeof the patent was 13 years, but Epstein believes that the patent will only be useful for another eight years.c. Epstein acquired a franchise on October 1, 2021, by paying an initial franchise fee of $212,000. The contractuallife of the franchise is 10 years.Required:1. Prepare year-end adjusting journal entries to record amortization expense on the intangibles at December 31,2021.a) Record the goodwill amortization?b) Record the amortization of patent?c) Record the amortization of franchise?2. Prepare the intangible asset section of the December 31, 2021, balance sheet.Partial Balance SheetDecember 31, 2021Intangible assets:GoodwillPatentFranchiseTotal intangibles

An intangible asset seems to be one that does not have a physical form. Intangible assets include…

Answered: The following information concerns the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

What are the answers to Required 1a (goodwill amortization Journal Entry(, 1b (amortization of patent Journey Entry), 1c (amortization of franchise Journal Entry), and to Required 2 (fill in the Partial Balance Sheet)?

The following information concerns the intangible assets of Epstein Corporation:
a. On June 30, 2021, Epstein completed the acquisition of the Johnstone Corporation for $2,180,000 in cash. The
fair value of the net identifiable assets of Johnstone was $1,850,000.
b. Included in the assets purchased from Johnstone was a patent that was valued at $84,800. The remaining legal life
of the patent was 13 years, but Epstein believes that the patent will only be useful for another eight years.
c. Epstein acquired a franchise on October 1, 2021, by paying an initial franchise fee of $212,000. The contractual
life of the franchise is 10 years.
Required:
1. Prepare year-end adjusting journal entries to record amortization expense on the intangibles at December 31,
2021.
a) Record the goodwill amortization?
b) Record the amortization of patent?
c) Record the amortization of franchise?
2. Prepare the intangible asset section of the December 31, 2021, balance sheet.
Partial Balance Sheet
December 31, 2021
Intangible assets:
Goodwill
Patent
Franchise
Total intangibles

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions