Acc421 Intermediate Accounting: E12-6 Rolanda Marshall Company, organized in 2006, has set up

Acc421 Intermediate Accounting

E12-6 (Recording & Amortization of Intangibles)
Rolanda Marshall Company, organized in 2006, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2007.
1/2/2007 Purchased patent (8-year life) 350,000
4/1/2007 Purchased goodwill (indefinite life) 360,000
7/1/2007 Purchased franchise with 10-year life; expiration date 7/1/17 450,000
8/1/2007 Payment of copyright (5-year life) 156,000
9/1/2007 Research and development costs 215,000
1,531,000
Instructions:
Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles.
Powered by