Your answer is partially correct. Cullumber Company purchased a patent on January 1, 2025 for $2,650,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2025, the company paid legal costs of $171,720 in successfully defending the patent in an infringement suit. Prepare the journal entry to amortize the patent at year-end on December 31, 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date December 31, 2025 Account Titles and Explanation Amortization Expense Patents Debit 701720 Credit 701720

Your answer is partially correct. Cullumber Company purchased a patent on January 1, 2025 for $2,650,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2025, the company paid legal costs of $171,720 in successfully defending the patent in an infringement suit. Prepare the journal entry to amortize the patent at year-end on December 31, 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date December 31, 2025 Account Titles and Explanation Amortization Expense Patents Debit 701720 Credit 701720

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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On December 31, 2020, Riverbed Inc. has a machine with a book value of $1,410,000. The original cost and related accumulated depreciation at this date are as follows. Machine $1,950,000 Less: Accumulated depreciation 540,000 Book value $1,410,000 Depreciation is computed at $90,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. (a) Your answer is correct. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $645,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and…
Problem 1-17 (AICPA Adapted) Regal Company sells gift certificates, redeemable for store merchandise. The gift certificates have no expiration date. The entity has the following information pertaining to the gift certificate sales and redemptions: - Unearned revenue on January 1, 2020 2020 sales 2020 redemptions of prior year sales 2020 redemptions of current year sales 750,000 -2,500,000 250,000 1,750,000 What amount should be reported as unearned revenue on December 31, 2020? 1,250,000 b. а. 1,125,000 1,000,000 d. с. 500,000
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Current Attempt in Progress Sunland Company collected $15760 in May of 2021 for 4 months of service which would take place from October of 2021 through January of 2022. The revenue reported from this transaction during 2021 would be: O $0. O $11820. O $15760, O $3940. Save for Later Attempts: 0 of 1 used Submit Answer
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