Copy of Week1Part1-1 Journal Entries

Copy of Week1Part1-1 Journal Entries - Net loss for 2002...

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YOUR ANSWER Intangible Assets 7/1/2002 $42,000 10/1/2002 $28,000 12/31/2002 $16,000 1/2/2003 Patent purchased (10-year life) $74,000 3/1/2003 $75,000 4/1/2003 $278,400 6/1/2003 $12,650 9/1/2003 $160,000 SOLUTION Intangible Assets 7/1/2002 $42,000 (42,000) 10/1/2002 $28,000 (28,000) 12/31/2002 $16,000 (16,000) 1/2/2003 Patent purchased (10-year life) $74,000 (74,000) Part 1: Using Excel, Complete the following spreadsheet. Remove from Intangible Asset account (amount) 8-year franchise; expiration date 6/30/10 Advance payment on laboratory space (2-year lease) Net loss for 2002 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2002) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs Remove from Intangible Asset account (amount) 8-year franchise; expiration date 6/30/10 Advance payment on laboratory space (2-year lease)
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Unformatted text preview: Net loss for 2002 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2002) 3/1/2003 $75,000 (75,000) 4/1/2003 $278,400 (278,400) 6/1/2003 $12,650 (12,650) 9/1/2003 $160,000 (160,000) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs To Establish Franchises account. To establish a Patents account. Reason for removing item from Intangible Asset account Reason for removing item from Intangible Asset account To Establish Prepaid Rent Account account. To record 6,000 representing organziation costs and the remaining net loss of 10,000 in Retained Earnings. To establish a goodwill account. To record Research and Development Expenses To record legal fees in the Patents account To record Research and Development Expenses...
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Copy of Week1Part1-1 Journal Entries - Net loss for 2002...

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