Prepare the journal entry to record amortization expense for 2020. Prepare the intangible assets section of Teal Mountai Inc. at December 31, 2020. (No impairments are required to be recorded in 2020.) (Credit account titles are automatically in when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
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Journal entry is the first stage of accounting process.
Journal entry used to record business transactions.
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it plays important role in book keeping.
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- The following transactions involving intangible assets of Oriole Corporation occurred on or near December 31, 2020. 1. Minton paid Grand Company $440,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Oriole is in business. Oriole spent $600,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. 2. In January, 2021, Oriole's application for a patent (#2 above) was granted. Legal and registration costs incurred were $249,900. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years. Oriole incurred $180,800 in successfully defending one of its patents in an infringement suit. The patent expires during 3. 4. December, 2024. Oriole incurred $470,400 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $241,920, is…Whispering Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $54,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 6%; Whispering's incremental borrowing rate is 8%. Whispering is unaware of the rate being used by the lessor. At the end of the lease, Whispering has the option to buy the equipment for $5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Whispering uses the straight-line method of depreciation on similar owned equipment. Click here to view factor tables.View Policies Show Attempt History Current Attempt in Progress On January 1, 2020, Teal Company sold 11% bonds having a maturity value of $500.000 for $ 518.953, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020. and mature January 1. 2025, with interest payable December 31 of each year. Teal Company allocates interest and unamortized discount or premium on the effective interest basis.
- Make the entry as of December 31, 2025, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit CreditPrepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020On December 31, 2024, Blossom Inc. borrowed $4,380,000 at 12% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: March 1, $525,600; June 1, $876,000; July 1, $2,190,000; December 1, $2,190,000. The building was completed in February 2026. Additional information is provided as follows. 1. 2. Other debt outstanding: 10-year, 13% bond, December 31, 2018, interest payable annually 6-year, 10% note, dated December 31, 2022, interest payable annually March 1, 2025, expenditure included land costs of $219,000. 3. Interest revenue of $71,540 earned in 2025. $5,840,000 2,336,000 Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building. The amount of interest $
- Wildhorse Company, organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025. 1/2/25 Purchased patent (8-year life) 4/1/25 Purchase goodwill (indefinite life) 7/1/25 Purchased franchise with 10-year life; expiration date 7/1/35 8/1/25 Payment of copyright (5-year life) 9/1/25 Research and development costs $360,800 361,000 441,000 Debit 169,200 231,000 $1,563,000 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation CreditOn January 1, 2022, Sandhill Co. had a balance of $411,000 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions. Jan. 2 Purchased a patent (7-year life) $307,650. July 1 Sept. 1 Acquired a 9-year franchise; expiration date July 1, 2,031, $576,000. Research and development costs $178,500.Exercise 12-06 Pharoah Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (7-year life) $304,500 4/1/20 Purchase goodwill (indefinite life) 345,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 425,000 8/1/20 9/1/20 Payment of copyright (5-year life) 150,000 Research and development costs 215,000 $1,439,500 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit
- dont uplode any image in answer Prepare the appropriate journal entries for the capitalization of the asset and the annual amortization. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)Victor Minell, the new controller of Crane Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2025. Here are his findings: Type of Asset Building Warehouse Date Acquired Jan. 1.2017 Jan 1, 2020 Cost $737,000 121.000 eTextbook and Media Revised annual depreciation $ List of Accounts Accumulated Depreciation, Jan. 1.2025 $134,400 23.290 Useful Life (in years) Proposed 58 Old Building 40 25 20 All assets are depreciated by the straight-line method. Crane Company uses a calendar year in preparing annual financial statements After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, not remaining life.) Compute the revised annual depreciation on each asset in 2025. (Round answers to O decimal places, eg 125) Salvage Value Old $65,000 4,550 Warehouse Proposed $36,700 5,100On December 31, 2019, Nash Inc. borrowed $3,300,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $396,000: June 1, $660,000: July 1, $1,650,000: December 1, $1.650,000. The building was completed in February 2021. Additional information is provided as follows 1. 2. 3. Other debt outstanding 10-year, 14% bond, December 31, 2013, interest payable annually 6-year, 11% note, dated December 31, 2017, interest payable annually March 1, 2020, expenditure included land costs of $165,000 Interest revenue earned in 2020 Your answer is incorrect. $4,400,000 $1,760,000 The amount of interest $ $53.900 Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.