Transactions during 2020 of the newly organized PLANTSAHIN Corp included the following: Paid legal fees of P150,000 and stock certificate costs of P83,000 to complete organization of the corporation. Jan. 2 15 Hired a clown to stand in front of the corporate office for 2 weeks and hound out pamphlets and candy to create goodwill for the new enterprise. Clown cost, P10,000; pamphlets and candy, P5,000. Apr. 1 Patented a newly developed process with costs as follows: P 400,000 Research and development cost Legal fees to obtain patent Patent application and licensing fees Total 10,000 40,000 P 450,000 It is estimated that in 6 years other companies will have developed improved processes, making the Plantsahin Corp. process obsolete. Jul 1 Acquired both a license to use a special type of container and a distinctive trademark to be printed on the container in exchange for 6,000 shares of Plantsahin's no-par common stock selling for P50 per share. The trademark is worth twice as much as the license, both of which may be used for 6 years. Constructed a shed for P1,310,000 to house prototypes of experimental models to be developed in future research projects. Aug 1

Transactions during 2020 of the newly organized PLANTSAHIN Corp included the following: Paid legal fees of P150,000 and stock certificate costs of P83,000 to complete organization of the corporation. Jan. 2 15 Hired a clown to stand in front of the corporate office for 2 weeks and hound out pamphlets and candy to create goodwill for the new enterprise. Clown cost, P10,000; pamphlets and candy, P5,000. Apr. 1 Patented a newly developed process with costs as follows: P 400,000 Research and development cost Legal fees to obtain patent Patent application and licensing fees Total 10,000 40,000 P 450,000 It is estimated that in 6 years other companies will have developed improved processes, making the Plantsahin Corp. process obsolete. Jul 1 Acquired both a license to use a special type of container and a distinctive trademark to be printed on the container in exchange for 6,000 shares of Plantsahin's no-par common stock selling for P50 per share. The trademark is worth twice as much as the license, both of which may be used for 6 years. Constructed a shed for P1,310,000 to house prototypes of experimental models to be developed in future research projects. Aug 1

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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The company ALPHA on 31/8/2021 sells mechanical equipment for € 380,000.The equipment was acquired on 1/5/2016 (date of commencement of production activity) for an amount of € 450,000. The depreciation rate of the equipment is 10% per year. Make the relevant accounting entries for the sale.
Which of the following statements concerning intangibles is true? a. a copyright should be considered an intangible with an indefinite lifeb. organization costs must be expensed as incurredc. a patent should be amortized over the shorter of the inventor’s life or its economic lifed. the registration of a trademark or tradename lasts for 20 years and is nonrenewable
B. January 17, 2020, Roddick Company incurred $172,000 in successfully defending one of its patents in an infringement suit. The patent expires during December 2023. Required: Prepare the journal entry needed at the date of the transaction and on December 31, 2020 to record any resultant amortization.
In its December 31, 2020, statement of financial position, what amount should Maelet report as an intangible asset-franchise
The intangible assets section of Novak Corporation's balance sheet at December 31, 2025, is presented here. Patents ($78,000 cost less $7,800 amortization) Copyrights ($46,800 cost less $32,760 amortization) Total $70,200 14,040 $84,240 The patent was acquired in January 2025 and has a useful life of 10 years. The copyright was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2026. Jan. 2 Jan.-June Sept. 1 Oct. 1 Paid $60,840 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $299,000 in research and development costs. 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 $26,400. Paid $52,000 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a copyright for…
Prepare these journal entries: Dec. 31, 2020 (To clear Intangible Assets account)Dec. 31, 2020 (To correct for amortization on franchises)Dec. 31, 2020 (To correct for rent payments)Dec. 31, 2020 (To record amortization expense on patents)Dec. 31, 2020 (To record amortization expense on licences)Dec. 31, 2020 (To record amortization expense on development cost)
The answer is P28,125. The 1st bullet’s computation of amortization is only needed. The 2nd and 3rd bullet does not need to be amortized. Help me compute for the 1st bullet's amortization.
Presented below is information related to copyrights owned by Carla Vista Company at December 31, 2020. Cost $8,630,000 Carrying amount 4,480,000 Expected future net cash flows 4,140,000 Fair value 3,330,000 Assume that Carla Vista Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. The fair value of the copyright at December 31, 2021, is $3,500,000. Prepare the journal entry necessary to record the increase in fair value.
Intangibles: Balance Sheet Presentation and Income Statement Effects Clinton Company has provided information on Intangible assets as follows: 1. A patent was purchased from Lou Company for $1,230,000 on January 1, 2018. Clinton estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of 5850,000 when Lou sold it to Clinton. 2. During 2019, a franchise was purchased from Rink Company for $550,000, In addition, 6% of revenue from the franchise must be pald to Rink. Revenue from the franchise for 2019 was $2,500,000. Clinton estimates the useful life of the franchise to be 5 years and takes a full vear's amortization in the year of purchase. 3. Clinton incurred RAD costs in 2019 as follows: Materials and equipment $147,000 Personnel 178,000 Indirect costs 69,000 $394,000 Clinton estimates that these costs will be recouped by December 31, 2020. 4. On January 1, 2019, Clinton estimates, based on new events,…
On december 31 2021, an equipment was classified as held for sale. Its fair value less cost to sell was 6,000,000 while the equipments carrying value on this date was 5,800,000. At what amount will current assets increqse due to this transaction?
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