Prepare journal entries to eliminate intangible assets

Assignment Help Accounting Basics
Reference no: EM131979441

Question - Correct Classification of Intangibles During the current year, Cartwright Corporation's accountant recorded numerous transactions in an account entitled Intangible Assets, as follows:

Jan. 2 Paid incorporation fees. $17,500

11 Paid legal fees for the organization of the company. 7,500

25 Paid for large-scale advertising campaign for the year. 15,000

Apr. 1 Acquired land for $15,000 and a building for $20,000 to house the R&D activities. The building has a 20-year life. 35,000

May 15 Purchased materials exclusively for use in R&D activities. Of these materials, 20% are left at the end of the year and will be used in the same project next year. (They have no alternative use.) 15,000

June 30 Paid expenses related to obtaining a patent. 10,000

Dec. 11 Purchased an experimental machine from an inventor. The machine is expected to be used for a particular R&D activity for 2 years, after which it will have no residual value. 12,000

31 Paid salaries of employees involved in R&D. 30,000

Required: Prepare adjusting journal entries to eliminate the Intangible Assets account and correctly record all the items. Cart-wright amortizes patents over 10 years.

Reference no: EM131979441

Questions Cloud

Industrial organizations of perfect competition and monopoly : Explain the similarities and differences between the industrial organizations of perfect competition and monopoly
Financially responsible for all repairs over a specified per : Now suppose Peter plans to use a warranty (i.e., be financially responsible for all repairs over a specified period) to signal the quality of his merchandise.
Market valuation coupled with extremely high growth rate : Another indication of Blossom Computing being in the Rapid Growth Period is due to its high market valuation coupled with an extremely high growth rate.
Effect the omo process : How does this effect the OMO process and its implications for the cash rate, interest rates, inflation and GDP?
Prepare journal entries to eliminate intangible assets : Prepare adjusting journal entries to eliminate the Intangible Assets account and correctly record all the items. Cart-wright amortizes patents over 10 years
Discuss the changing nature of health and medical care : Discuss the changing nature of health and medical care and the implications for medical practice, medical education and research, and health policy.
Controversies surrounding development of health insurance : Discuss controversies surrounding the development of health insurance and the government's role in providing, financing, and regulating health insurance
Price elasticity of demand between tortilla chips and salsa : Lindsey is willing to purchase 2 bags of tortilla chips when the price of salsa is $2.50. If the price of salsa rises to $3 and she purchases only 1 bag
What is the cost to purchase a statement : If not, how would you obtain a copy of a statement pertinent to federal agencies? What is the cost to purchase a statement

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  What is the total interest revenuefrom these bonds that

nilani company purchased 100 arapaho company bonds on april 12007. the bonds pay interest semiannually on march 31 and

  Compute the amount of dividends in total payable

Compute the amount of dividends in total payable to each class of stockholders if dividends were declared as described in each case.

  A corporation purchases 10000 shares of its own 25 par

a corporation purchases 10000 shares of its own 25 par common stock for 400000 recording it at cost. what will the

  What is the implicit interest rate

Respond to each of the following questions (notice that there are main questions and sub-questions below some of the main questions - don't miss any!) What is the value of the position after 6 months? What is the implicit interest rate in these cas..

  Database technology may eliminate the need for double-entry

database technology may eliminate the need for double-entry accounting. this creates three possibilities 1 the

  Calculate the economic order quantity for glass

Damaged inventory is estimated to be on average $5 per average unit held. This will not be incurred under JIT. Calculate the Economic Order Quantity for glass

  What amount of cash was received from each note

Which note has the higher effective interest rate? Support your answer with appropriate computations.

  Shares of common stock out-standing

Misty's effective tax rate is 40% and there were 1,000 shares of common stock outstanding.

  Compute the new effective interest rate

Compute the gain or loss for D. Yeager Corp. and prepare a schedule of receivable reduction and interest revenue for the years 2010 through 2013.

  Portfolio project on trust and estates

Portfolio Project: Trust and Estates

  List the pros and cons of adrs and direct purchases

ADRs Versus Direct Holdings. When you are constructing your portfolio, you know you want to include Cementos de Mexico (Mexico), but you cannot decide whether.

  What amount should general machinery report as a liability

Total actual warranty expenditure = $ 70,875, What amount should General Machinery report as a liability at December 31, 2012

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd