Van Frank Telecommunications has a patent on a cellular transmission process. The company hasamortized the patent on a straight-line basis since 2020, when it was acquired at a cost of $27.0 million atthe beginning of that year. Due to rapid technological advances in the industry, management decided thatthe patent would benefit the company over a total of six years rather than the nine-year life being used toamortize its cost. The decision was made at the beginning of 2024.Required:Prepare the year-end journal entry for patent amortization in 2024. No amortization was recorded duringthe year.Note: If no entry is required for a transaction/event, select "No journal entry required" in the firstaccount field. Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should beentered as 5.5).1No> Answer is complete but not entirely correct.EventGeneral Journal1Amortization expensePatentDebitCredit7,500,000.007,500,000.00

Detailed explanation:Amortization per year = cost / useful life = 27.0 million / 9 years = 3.0…

Answered: Van Frank Telecommunications has a…

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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Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight- line basis since 2020, when it was acquired at a cost of $20.7 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2024. Required: Prepare the year-end journal entry for patent amortization in 2024. No amortization was recorded during the year Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.5).
Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $19.80 million cost of the patent on a straight-line basis since it was acquired at the beginning of 2020. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the end of 2024 (before adjusting and closing entries). What is the appropriate adjusting entry for patent amortization in 2024 to reflect the revised estimate? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). View transaction list Journal entry worksheet < 1 Record the adjusting entry for patent amortization in 2024. Note: Enter debits…
Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-line basis since 2017, when it was acquired at a cost of $9 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2021. Required:Prepare the year-end journal entry for patent amortization in 2021. No amortization was recorded during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5)).
Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-line basis since 2017, when it was acquired at a cost of $9 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2021.Required:Prepare the year-end journal entry for patent amortization in 2021. No amortization was recorded during the year.
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