AP12-1 - AP12-1 Correct. (Correct Intangible Asset Account)...

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AP12-1 Correct. (Correct Intangible Asset Account) Reichenbach Co., organized in 2009, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2009 and 2010. Intangible Assets 7/1/09 8-year franchise; expiration date 6/30/17 $ 78,720 10/1/09 Advance payment on laboratory space (2-year lease) 39,360 12/31/09 Net loss for 2009 including state incorporation fee, $1,640, and related legal fees of organizing, $8,200 (all fees incurred in 2009) 26,240 1/2/10 Patent purchased (10-year life) 137,760 3/1/10 Cost of developing a secret formula (indefinite life) 123,000 4/1/10 Goodwill purchased (indefinite life) 456,576 6/1/10 Legal fee for successful defense of patent purchased above 16,445 9/1/10 Research and development costs 262,400 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2010, recording
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AP12-1 - AP12-1 Correct. (Correct Intangible Asset Account)...

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