Johnson companys balance sheet section with intangible

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Reference no: EM13347592


Johnson company's balance sheet section with intangible assets at 12/31/2012 is presented below.



cost less amortization net


Patents $35,000 $3,000 $32,000


Copyrights $20,000 $6,000 $14,000


Total


$46,000









The patent for fire retardent :





Acquired 1/15/2012
Use ful life 24 years









The copyright for publishing the operating procedures manual :


Acquired 1/15/2012
Use ful life 16 years









Some Paid cash transactions with potential impact on intangible assets follow :


Attorneys fees for infringement defense 1/15/2013 $20,000


R and D for the new retardent sprayer Jan-June $100,000


Product patent received
6/1/2013





Useful life (same as legal life)


Patent total legal and related costs
$6,000


Harry Onfire Celebrity endorsement cost Sept-Oct $50,000









A new copyright for making antidotes to the retardent was purchased from Burnemnot


Acquired 10/1/2013
Use ful life 20 years


Cost $60,000
Legal life 20 years









Franchise and license were obtained for the new products from Bradpittster company


Acquired 10/1/2013
Use ful life 10 years


Cost $85,000












Small division of Angelojolie Company (distribution chain) was purchased


Acquired 12/1/2013
Price $400,000



fair value determined to be  $250,000

Instructions

(a) Prepare the correct journal entries to record the transactions.

(b) Prepare the correct journal entries to record the 2013 amortization expense.

(c) Prepare the balance sheet intangible assets section December 31, 2013.

(d) Prepare a note to the financial statements on Johnson Company's intangible assets as of December 31, 2013.

Reference no: EM13347592

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