Janes Company provided the following information on intangible assets:
a. A patent was purcha...
Janes Company provided the following information on intangible assets:
a. A patent was purchased from the Lou Company for $1,500,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $510,000 when Lou sold it to Janes.
b. During 2021, a franchise was purchased from the Rink Company for $660,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase.
c. Janes incurred research and development costs in 2021 as follows:
Materials and supplies $156,000
Personnel 196,000
Indirect costs 76,000
Total $428,000
d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years.
Required:
1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information.
2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet.
Answers: 2
Another question on Business
Business, 21.06.2019 21:00
On june 1 of the current year, chad wilson established a business to manage rental property. he completed the following transactions during june: opened a business bank account with a deposit of $28,000 from personal funds. purchased office supplies on account, $2,690. received cash from fees earned for managing rental property, $7,390. paid rent on office and equipment for the month, $3,310. paid creditors on account, $1,230. billed customers for fees earned for managing rental property, $6,130. paid automobile expenses (including rental charges) for the month, $740, and miscellaneous expenses, $370. paid office salaries, $2,330. determined that the cost of supplies on hand was $1,590; therefore, the cost of supplies used was $1,100. withdrew cash for personal use, $2,210. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300) answer
Answers: 1
Business, 22.06.2019 02:20
Neon light company of kansas city ships lamps and lighting appliances throughout the country. ms. neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by one and one-half days. furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. the bank has a remote disbursement center in florida. a. if neon light company has $2.90 million per day in collections and $1.18 million per day in disbursements, how many dollars will the cash management system free up?
Answers: 2
Business, 22.06.2019 03:10
Jackson is preparing for his hearing before the federal communications commission (fcc) involving a complaint that was filed against him by the fcc regarding the interruption of radio frequency. the order to "cease and desist" using the radio frequency has had a detrimental impact on his business. once the administrative law judge prepares his or her initial order, jackson has no further options. no, jackson can request that the matter be reviewed by an agency board or commission. yes, once the initial order is presented, it's only a matter of time before the order becomes final.
Answers: 3
You know the right answer?
Questions
Geography, 20.07.2019 23:30
History, 20.07.2019 23:30
History, 20.07.2019 23:30
Biology, 20.07.2019 23:30
Mathematics, 20.07.2019 23:30
