### Intangible Assets of Riverbed Company as of December 31, 2022The following details the intangible assets recorded by the Riverbed Company at the end of the fiscal year 2022:| **Assets** | **Amount** ||------------|-------------|| Patents (Cost: $70,000, Amortization: $7,000) | $63,000 || Franchises (Cost: $44,800, Amortization: $17,920) | $26,880 || **Total** | **$89,880** |The intangible assets include:1. **Patents**: Initially acquired in January 2022 with an amortized value of $63,000. The patent is expected to have a useful life of 10 years.2. **Franchises**: Acquired in January 2019 with a current amortized value of $26,880. This franchise has an estimated useful life of 50 years.### Significant Transactions Affecting Intangible Assets in 2023Several significant transactions in 2023 impacted the intangible assets of Riverbed Company:- **January 2**: The company paid $21,600 in legal fees to successfully defend a patent infringement claim.- **September 1**: Paid $50,000 for promotional costs featuring an athlete to advertise the company's products. The advertising campaign ran during September and October.- **October 1**: Acquired a new franchise for a cost of $111,600. The newly acquired franchise is projected to have a useful life of 50 years.- **November-December**: Developed a new product which incurred research and development costs totaling $145,000. A patent for this product was granted on January 1, 2024.These transactions are integral in understanding the intangible asset management practices of the Riverbed Company and reflect their commitments to maintaining and enhancing intellectual property and franchise investments. ### Journal Entries for Educational Reference**Instructions:**Follow the steps below to complete the journal entries for the transactions listed. Remember to list all debit entries before credit entries. Credit account titles are automatically indented when the 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 0 for the amounts.**Journal Entries:**1. **Date: January 2** - **Account Titles and Explanation** - Patents: Debit $ \$63,000 $ - Cash: Credit $ \$63,000 $2. **Date: September 1** - **Account Titles and Explanation** - Advertising Expense: Debit (Amount not specified) - Cash: Credit (Amount not specified)3. **Date: October 1** - **Account Titles and Explanation** - Franchises: Debit (Amount not specified) - Cash: Credit (Amount not specified)4. **Date: November-December** - **Account Titles and Explanation** - Research and Development Expense: Debit (Amount not specified) - Cash: Credit (Amount not specified)### Explanation of Fields:- **Date:** The date when the transaction occurred.- **Account Titles and Explanation:** The names of the accounts used for the transaction and a brief explanation if necessary.- **Debit:** The amount debited to the account.- **Credit:** The amount credited to the account. ### Notes:- The information provided reflects partial transactions. Complete the journal entries by including the appropriate amounts wherever "Amount not specified" appears. This table helps students understand the journal entry process by providing a structured example based on typical business transactions. ### Visual Explanation:**Table Format:** The table is split into four main columns: - **Date**: This column records the date of the transaction.- **Account Titles and Explanation**: This column lists the accounts affected by the transaction and provides a brief description.- **Debit**: This column shows the amount debited.- **Credit**: This column displays the amount credited.### Example Image:- Imagine a clear table with editable fields where you can input values directly for practical and interactive learning experiences.

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The intangible assets section of Riverbed Company at December 31, 2022, is presented here. Patents ($70,000 cost less $7,000 amortization) Franchises ($44,800 cost less $17,920 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 $63,000 Nov.- Dec. 26,880 $89,880 Paid $21,600 legal costs to successfully defend the patent against infringement by another company. Paid $50,000 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 $111,600. 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.

The intangible assets section of Riverbed Company at December 31, 2022, is presented here. Patents ($70,000 cost less $7,000 amortization) Franchises ($44,800 cost less $17,920 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 $63,000 Nov.- Dec. 26,880 $89,880 Paid $21,600 legal costs to successfully defend the patent against infringement by another company. Paid $50,000 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 $111,600. 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.

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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