Prepare journal entries to record the preceding transactions

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Reference no: EM131263896

Byrd Corporation engaged in the following transactions at the beginning of 2016: a. Purchased a Hogburger franchise for a 5-year, $60,000, 10% interest-bearing note. The franchise has an indefinite life providing the terms of the franchise are not violated. b. Sold a trade name for $50,000. The trade name had a carrying value of $5,000. c. Paid an advertising agency $60,000 for advertisements to promote a new trade name. The advertisements will begin in 2017. d. Incurred legal fees of $5,000 to register a new trade name. e. Purchased the copyright to a new movie for $500,000. The movie is made during 2016 at a cost of $15 million. It will begin showing in 2017 and is expected to gross $10 million during 2017, $20 million during 2018, and $10 million during 2019. Required: 1. Prepare journal entries to record the preceding transactions, including any appropriate adjusting entries for 2016. 2. Next Level With regard to the copyright in Transaction e, what factors should Byrd consider in selecting an amortization method?

Reference no: EM131263896

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