The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $150,500 balance in this account at the end of 2021 is as follows: Date Transaction February 3 State incorporation fees and legal costs related to organizing the corporation March 1 Fire insurance premium for three-year period March 15 April 30 June 15 September 30 October 13 Various Purchased a copyright Research and development costs Legal fees for filing a patent on a new product resulting from an R&D project Legal fee for successful defense of patent developed above Entered into a 10-year franchise agreement with franchisor Advertising costs Total Amount $ 7,500 6,500 21,000 41,000 3,500 13,000 41,000 17,000 $150,500 Required: Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other types of assets, and expenses indicated by the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $150,500 balance in this account at the end of 2021 is as follows: Date Transaction February 3 State incorporation fees and legal costs related to organizing the corporation March 1 Fire insurance premium for three-year period March 15 April 30 June 15 September 30 October 13 Various Purchased a copyright Research and development costs Legal fees for filing a patent on a new product resulting from an R&D project Legal fee for successful defense of patent developed above Entered into a 10-year franchise agreement with franchisor Advertising costs Total Amount $ 7,500 6,500 21,000 41,000 3,500 13,000 41,000 17,000 $150,500 Required: Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other types of assets, and expenses indicated by the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were
debited to one account called intangible asset. A recap of the $150,500 balance in this account at the end of 2021 is as follows:
Date
Transaction
February 3 State incorporation fees and legal costs related to organizing the corporation
Fire insurance premium for three-year period
Purchased a copyright
Research and development costs
Legal fees for filing a patent on a new product resulting from an R&D project
Legal fee for successful defense of patent developed above
Entered into a 10-year franchise agreement with franchisor
Advertising costs
Total
March 1
March 15
April 30
June 15
September 30
October 13
Various
$
Amount
7,500
6,500
21,000
41,000
3,500
13,000
41,000
17,000
$150,500
Required:
Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other
types of assets, and expenses indicated by the transactions. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d372cd8-4436-4d0a-b4d5-e9a0902c939f%2F9c6d0e16-d12a-4121-9f59-292d2e25b7fc%2F1npljbe_processed.png&w=3840&q=75)
Transcribed Image Text:The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were
debited to one account called intangible asset. A recap of the $150,500 balance in this account at the end of 2021 is as follows:
Date
Transaction
February 3 State incorporation fees and legal costs related to organizing the corporation
Fire insurance premium for three-year period
Purchased a copyright
Research and development costs
Legal fees for filing a patent on a new product resulting from an R&D project
Legal fee for successful defense of patent developed above
Entered into a 10-year franchise agreement with franchisor
Advertising costs
Total
March 1
March 15
April 30
June 15
September 30
October 13
Various
$
Amount
7,500
6,500
21,000
41,000
3,500
13,000
41,000
17,000
$150,500
Required:
Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other
types of assets, and expenses indicated by the transactions. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
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