AE12-6 - debit/credit entries from largest to smallest...

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AE12-6 Correct. (Recording and Amortization of Intangibles) Powerglide Company, 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 2010. 1/2/10 Purchased patent (8-year life) $385,456 4/1/10 Purchased goodwill (indefinite life) 361,365 7/1/10 Purchased franchise with 10- year life; expiration date 7/1/20 427,000 8/1/10 Payment of copyright (5-year life) 130,848 9/1/10 Research and development costs 210,230 $1,514,899 (a) Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for d smallest amount, e.g. 10, 5, 2.) Account/Description Franchise Patents Goodwill Copyright Intangible Assets (b) Make the entries as of December 31, 2010, recording any necessary amortization and reflecting all bala
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Unformatted text preview: debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Account/Description Amortization Expense Patents Franchise Copyright (c) Show balance of intangibles as of December 31, 2010. (List amounts from largest to smallest, e.g. 10, 5, Franch ise Goodw ill Patents Copyri ght (a) Account/Description Franchise Patents Goodwill Research and Development Expense Copyright Intangible Assets (b) Amortization Expense Patents ($385,456 8) Franchise ($427,000/10 6/12) Copyright ($130,848/5 5/12) (c) Balance of Intangible Assets as of December 31, 2010 Franchise ($427,000 - $21,350) Goodwill (no amortization) Patents ($385,456 - $48,182) Copyright ( $130,848 - $10,904)...
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AE12-6 - debit/credit entries from largest to smallest...

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