Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 12, Problem 2P
To determine
Prepare necessary
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As the recently appointed auditor for Blossom Corporation, you have been asked to examine selected accounts before the six-month
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INTANGIBLE
L
)
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Research costs
Legal costs to obtain patent
Payment of seven months' rent on property leased by Blossom (February to August)
Proceeds from issue of common shares
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Account Titles and Explanation
(To correct intangible asset account)
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ASSETS
(To correct intangible asset account)
(To record amortization expense)
(To record amortization expense)
Debit
Debit
1,056,500
47,000
50,400
158,000
216,000
328,000
Credit
Prepare the…
As the recently appointed auditor for Sandhill Corporation, you have been asked to examine selected accounts before the six-month
financial statements of June 30, 2023, are prepared. The controller for Sandhill mentions that only one account is kept for intangible
assets. The entries in Intangible Assets since January 1, 2023, are as follows:
INTANGIBLE ASSETS
4
5
11
30
30
Research costs
Legal costs to obtain patent
Payment of seven months' rent on property leased by Sandhill (February to August)
Proceeds from issue of common shares
Promotional expenses related to start-up of business
Development stage costs (meet all six development stage criteria)
Start-up costs for first six months of operations
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Debit
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1,043,600
57,000
50,400
159,000
222,000
314,000
Credit
Credit
309,800
Balance
1,043,600
1,100,600
1,151,000
841,200
1,000,200
Prepare the journal entry or entries needed to correct this account. Allocate rent between the prepaid and expense accounts…
As the recently appointed auditor for Cheyenne Corporation, you have been asked to examine selected accounts before the 6-month
financial statements of June 30, 2020, are prepared. The controller for Cheyenne Corporation mentions that only one account is kept
for intangible assets. The account is shown below.
Jan. 4
Jan. 5
Jan. 31
Feb. 11
March 31
April 30
June 30
Intangible Assets
Research and development costs
Legal costs to obtain patent
Payment of 7 months' rent on property
leased by Cheyenne
Premium on common stock
Unamortized bond discount on bonds
due March 31, 2040
Promotional expenses related to
start-up of business
Operating losses for first 6 months
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934,000
72,960
86,800
93,600
228,800
259,000
Credit
234,000
Balance
934,000
1,006,960
1,093,760
859,760
953,360
1,182,160
1,441,160
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Chapter 12 Solutions
Intermediate Accounting: Reporting And Analysis
Ch. 12 - Prob. 1GICh. 12 - Prob. 2GICh. 12 - Prob. 3GICh. 12 - Prob. 4GICh. 12 - Prob. 5GICh. 12 - Prob. 6GICh. 12 - Prob. 7GICh. 12 - What activities are included in RD? Which are...Ch. 12 - What elements of RD activities does a company...Ch. 12 - How does a company record a patent worth 100,000...
Ch. 12 - Prob. 11GICh. 12 - Prob. 12GICh. 12 - Over how many years are patents amortized?...Ch. 12 - Prob. 14GICh. 12 - Prob. 15GICh. 12 - Prob. 16GICh. 12 - Prob. 17GICh. 12 - Prob. 18GICh. 12 - Prob. 19GICh. 12 - Prob. 20GICh. 12 - What is the proper time or time period over which...Ch. 12 - Prob. 2MCCh. 12 - Prob. 3MCCh. 12 - Which of the following assets typically are...Ch. 12 - Prob. 5MCCh. 12 - Prob. 6MCCh. 12 - Prob. 7MCCh. 12 - Prob. 8MCCh. 12 - Prob. 9MCCh. 12 - Prob. 10MCCh. 12 - Steel Magnolia Incorporated purchased a trademark...Ch. 12 - Match the following items with correct accounting...Ch. 12 - Notting Hill Company incurred the following costs...Ch. 12 - Hook Corp. incurred the following start-up costs,...Ch. 12 - Mystic Pizza Company purchased a patent from Prime...Ch. 12 - Mystic Pizza Company purchases a franchise from NY...Ch. 12 - Prob. 7RECh. 12 - Prob. 8RECh. 12 - Prob. 9RECh. 12 - Prob. 10RECh. 12 - Prob. 1ECh. 12 - On January 4, 2019, Franc Company purchased for...Ch. 12 - On January 11, 2019, Hughes Company applied for a...Ch. 12 - Gansac Publishing Company signed a contract with...Ch. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - KLK Clothing Company manufactures professional...Ch. 12 - Cressman Company incurred RD costs for various...Ch. 12 - In 2019, Lalli Corporation incurred RD costs as...Ch. 12 - Kling Company was organized in late 2019 and began...Ch. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Company is considering purchasing EKC Company....Ch. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Halpern Companys controller prepared the following...Ch. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Hamilton Companys balance sheet on January 1,...Ch. 12 - Prob. 8PCh. 12 - Lee Manufacturing Corporation was incorporated on...Ch. 12 - Information concerning Tully Corporations...Ch. 12 - Prob. 11PCh. 12 - In examining Samson Manufacturing Companys books,...Ch. 12 - Prob. 2CCh. 12 - Prob. 3CCh. 12 - Prob. 4CCh. 12 - On June 30, 2019, your client, Sprauge...Ch. 12 - Prob. 6CCh. 12 - NBC paid 401 million for the rights to televise...Ch. 12 - Prob. 8C
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