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The intangible assets section of Pronghorn Company at December 31, 2022, is presented here. Patents ($90,000 cost less $9,000 amortization) Franchises ($36,100 cost less $14,440 amortization) Total Jan. 2 Sept. 1 The patent was acquired in January 2022 and has a useful life of 10 years. The franchise was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Oct. 1 Nov.- Dec. (a) $81,000 Date 21,660 Paid $22,500 legal costs to successfully defend the patent against infringement by another company. Paid $48,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials aired in September and October. Acquired a franchise for $135,600. The franchise has a useful life of 50 years. Developed a new product, incurring $145,000 in research and development costs during December. A patent was granted for the product on January 1, 2024. 11 $102,660 Prepare journal entries to record the transactions above. (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.) Account Titles and Explanation Debit |||| Credit

The intangible assets section of Pronghorn Company at December 31, 2022, is presented here. Patents ($90,000 cost less $9,000 amortization) Franchises ($36,100 cost less $14,440 amortization) Total Jan. 2 Sept. 1 The patent was acquired in January 2022 and has a useful life of 10 years. The franchise was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Oct. 1 Nov.- Dec. (a) $81,000 Date 21,660 Paid $22,500 legal costs to successfully defend the patent against infringement by another company. Paid $48,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials aired in September and October. Acquired a franchise for $135,600. The franchise has a useful life of 50 years. Developed a new product, incurring $145,000 in research and development costs during December. A patent was granted for the product on January 1, 2024. 11 $102,660 Prepare journal entries to record the transactions above. (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.) Account Titles and Explanation Debit |||| Credit

FINANCIAL ACCOUNTING
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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(b) Prepare journal entries to record the 2023 amortization expense for intangible assets. (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.) Account Titles and Explanation (c). Date (To record patents amortization) (To record franchise amortization) Prepare the intangible assets section of the balance sheet at December 31, 2023. Pronghorn Company Balance Sheet (Partial) $ $ Debit Credit
Transcribed Image Text:(b) Prepare journal entries to record the 2023 amortization expense for intangible assets. (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.) Account Titles and Explanation (c). Date (To record patents amortization) (To record franchise amortization) Prepare the intangible assets section of the balance sheet at December 31, 2023. Pronghorn Company Balance Sheet (Partial) $ $ Debit Credit
The intangible assets section of Pronghorn Company at December 31, 2022, is presented here. Patents ($90,000 cost less $9,000 amortization) Franchises ($36,100 cost less $14,440 amortization) Total Jan. 2 The patent was acquired in January 2022 and has a useful life of 10 years. The franchise was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Sept. 1 Oct. 1 Nov.- Dec. $81,000 21,660 $102,660 Paid $22,500 legal costs to successfully defend the patent against infringement by another company. Paid $48,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials aired in September and October. Acquired a franchise for $135,600. The franchise has a useful life of 50 years. Developed a new product, incurring $145,000 in research and development costs during December. A patent was granted for the product on January 1, 2024. Date Prepare journal entries to record the transactions above. (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.) Account Titles and Explanation Debit 11 Credit
Transcribed Image Text:The intangible assets section of Pronghorn Company at December 31, 2022, is presented here. Patents ($90,000 cost less $9,000 amortization) Franchises ($36,100 cost less $14,440 amortization) Total Jan. 2 The patent was acquired in January 2022 and has a useful life of 10 years. The franchise was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Sept. 1 Oct. 1 Nov.- Dec. $81,000 21,660 $102,660 Paid $22,500 legal costs to successfully defend the patent against infringement by another company. Paid $48,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials aired in September and October. Acquired a franchise for $135,600. The franchise has a useful life of 50 years. Developed a new product, incurring $145,000 in research and development costs during December. A patent was granted for the product on January 1, 2024. Date Prepare journal entries to record the transactions above. (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.) Account Titles and Explanation Debit 11 Credit
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