The intangible assets section of Tamarisk, Inc.'s balance sheet at December 31, 2022, is presented here. Patents ($81,000 cost less $8,100 amortization) Copyrights ($42,200 cost less $29,540 amortization) Total Jan. 2 Jan.-July The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Sept. 1 Oct. 1 Date Dec. 31 Dec. 31 Prepare journal entries to record the 2023 amortization expense for intangible assets. (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 0 for the amounts.) : # Paid $27,000 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $131,000 in research and development costs during February. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $20,000. Patents Paid $46,000 to a quarterback to appear in commercials advertising the company's products. The commercials aired in September. Acquired a copyright for $149,000. The copyright has a useful life and legal life of 50 years. Account Titles and Explanation Amortization Expense Patents (To record patents amortization) Copyrights Amortization Expense $72,900 12,660 Copyrights Intangible Assets $85,560 (To record copyrights amortization) Prepare the intangible assets section of the balance sheet at December 31, 2023. Total Intangible Assets December 31, 2023 Tamarisk, Inc. Balance Sheet (Partial) $ $ Debit Credit
The intangible assets section of Tamarisk, Inc.'s balance sheet at December 31, 2022, is presented here. Patents ($81,000 cost less $8,100 amortization) Copyrights ($42,200 cost less $29,540 amortization) Total Jan. 2 Jan.-July The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Sept. 1 Oct. 1 Date Dec. 31 Dec. 31 Prepare journal entries to record the 2023 amortization expense for intangible assets. (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 0 for the amounts.) : # Paid $27,000 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $131,000 in research and development costs during February. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $20,000. Patents Paid $46,000 to a quarterback to appear in commercials advertising the company's products. The commercials aired in September. Acquired a copyright for $149,000. The copyright has a useful life and legal life of 50 years. Account Titles and Explanation Amortization Expense Patents (To record patents amortization) Copyrights Amortization Expense $72,900 12,660 Copyrights Intangible Assets $85,560 (To record copyrights amortization) Prepare the intangible assets section of the balance sheet at December 31, 2023. Total Intangible Assets December 31, 2023 Tamarisk, Inc. Balance Sheet (Partial) $ $ Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The intangible assets section of Tamarisk, Inc.'s balance sheet at December 31, 2022, is presented here.
Patents ($81,000 cost less $8,100 amortization)
Copyrights ($42,200 cost less $29,540 amortization)
Total
The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a
useful life of 10 years. The following cash transactions may have affected intangible assets during 2023.
Jan. 2
Jan.-July
Sept. 1
Oct. 1
Date
Dec. 31
Prepare journal entries to record the 2023 amortization expense for intangible assets. (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 0 for the amounts.)
Dec. 31
#
Paid $27,000 legal costs to successfully defend the patent against infringement by another company.
Developed a new product, incurring $131,000 in research and development costs during February. A patent was
granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were
$20,000.
Paid $46,000 to a quarterback to appear in commercials advertising the company's products. The commercials aired
in September.
Acquired a copyright for $149,000. The copyright has a useful life and legal life of 50 years.
Patents
Account Titles and Explanation
Amortization Expense
Patents
(To record patents amortization)
Copyrights
Amortization Expense
Copyrights
(To record copyrights amortization)
Prepare the intangible assets section of the balance sheet at December 31, 2023.
Intangible Assets
$72,900
12,660
$85,560
Total Intangible Assets
eTextbook and Media
Tamarisk, Inc.
Balance Sheet (Partial)
December 31, 2023
#
$
$
Debit
Credit
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