The general journal of Kevin Berry Industries included the following entries relating to various expenditures during 20X5. Review this information and prepare corresponding entries to record any necessary straight-line amortization or other impairment for the year ending December 31. GENERAL JOURNAL Date Accounts Debit Credit 01-Jan Patent 30,000 Cash 30,000 Acquired a patent from an inventor. The patent has a 15-year remaining legal life, but it is expected that Berry will utilize the patent for only 5 years. 15-May Research Expense 12,000 Cash 12,000 Incurred costs in research and development activity. It is possible these costs will result in new product with a 48-month life. 01-Sep Inventory 25,000 Building 75,000 Goodwill 50,000 Cash 150,000 To record purchase of business, expected to be operated successfully for an indefinite number of future years. 20-Dec Copyright 10,000 Cash 10,000 Purchased copyright to a video production, but concluded that it was worthiess by year's end.

The general journal of Kevin Berry Industries included the following entries relating to various expenditures during 20X5. Review this information and prepare corresponding entries to record any necessary straight-line amortization or other impairment for the year ending December 31. GENERAL JOURNAL Date Accounts Debit Credit 01-Jan Patent 30,000 Cash 30,000 Acquired a patent from an inventor. The patent has a 15-year remaining legal life, but it is expected that Berry will utilize the patent for only 5 years. 15-May Research Expense 12,000 Cash 12,000 Incurred costs in research and development activity. It is possible these costs will result in new product with a 48-month life. 01-Sep Inventory 25,000 Building 75,000 Goodwill 50,000 Cash 150,000 To record purchase of business, expected to be operated successfully for an indefinite number of future years. 20-Dec Copyright 10,000 Cash 10,000 Purchased copyright to a video production, but concluded that it was worthiess by year's end.

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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On December 31, it was estimated that a goodwill of $1,500,000was impaired. I addition on October 1, a patent with an estimated useful life of 10 years was acquired for $750,000. Required: Given the above transactions, make the following journal entries: a. An adjusting entry on December 31, for impaired goodwill b. An adjusting entry on December 31, for the amortization of the patent rights.
Aa.38.
In January of Year 1, Ford Co. purchased a patent from a research institution for $600,000. The patent was estimated to have a useful life of 15 years. In December of Year 2, Ford Co. defended the patent in legal proceedings and successfully retained rights of ownership of the patent. The estimated life of the patent did not change from its original estimate. Legal expenses on December 31 were $48,000. Determine the (1) amortization for Year 2, and (2) carrying value of the patent on December 31 of Year 2.
Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending 12/31/X7. Required: In the general journal below, complete the year-end entry to record depreciation. Debit Credit Dec 31 ? 40,000 ? 40,000
Blue Co. purchased a patent from the inventor for $36,000 on March 1, 20X6. Blue Co.’s fiscal year-end is December 31 each year. On the March 1, 20X6 purchase date, the remaining legal life of the patent was 6 years based on the original legal life of 20 years less 14 years since the patent was registered. Also on the March 1, 20X6 purchase date, the estimated remaining useful life of the patent for Blue Co.’s purposes is 3 years. Blue Co. amortizes patent costs in the year of acquisition for the portion of the year the patent was held. What is the patent’s book or carrying value as of December 31, 20X7? a. $14,000 b. $12,000 c. $22,000 d. $10,000
answer in text form please (without image), Note: .Every entry should have narration please
50) Crestfield leases office space. On January 3, the company incurs $15,000 to improve the leased office space. These improvements are expected to yield benefits for 10 years. Crestfield has 5 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements? A) Debit Amortization Expense-Leasehold Improvements $1,500; credit Accumulated Amortization Leasehold Improvements $1,500. B) Debit Depletion Expense $3,000; credit Accumulated Depletion $3,000. C) Debit Depreciation Expense $1,500; credit Accumulated Depreciation $1,500. D) Debit Depletion Expense $15,000; credit Accumulated Depletion $15,000. E) Debit Amortization Expense-Leasehold Improvements $3,000; credit Accumulated Amortization Leasehold Improvements $3,000.
Crestfield leases office space. On January 3, the company incurs $26,000 to improve the leased office space. These improvements are expected to yield benefits for 10 years. Crestfield has 5 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements?
Continuation of question....
Question: Explain to Alice how Hazelton would account for the restoration if the restoration costs differed from the recorded liability in three years. By way of explanation, prepare the journal entry to record the payment of the retirement obligation in three years assuming that the actual restoration costs were $4.7 million.
Lark Corp. appropriately determined that each of its long-term projects represents a single performance obligation that is satisfied over time. At the end of the current year, Lark estimates that its costs to complete a project exceed the contract price, so that an overall loss on the contract is anticipated. Required: What journal entry will Lark record at the end of the current year, given the following information? • Revenue to date is $350,000 ($175,000 of which is to be recognized in the current year). • The expense recognized previously was $100,000. • An overall loss of $30,000 is anticipated