Problem 7-6A (Algo) Record amortization and prepare the intangible assets section (LO7-5)The following information relates to the intangible assets of University Testing Services (UTS):a. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,306,000 in cash. The fair value of the netidentifiable assets of Heinrich was $3,000,000.b. Included in the assets purchased from Heinrich was a patent valued at $92,400. The original legal life of the patent was 20years; there are 12 years remaining, but UTS believes the patent will be useful for only eight more years.c. UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $362,000. The contractual life of the franchise is 10years.Required:1. Record amortization expense for the intangible assets at December 31, 2024.2. Prepare the intangible asset section of the December 31, 2024, balance sheet.Complete this question by entering your answers in the tabs below.Required: Required 2Record amortization expense for the intangible assets at December 31, 2024. (If no entry is required for a transaction/event, select "NoJournal Entry Required in the first account field.)View transaction listJournal entry worksheet< 1 2 3On January 1, 2024, UTS completed the purchase of Heinrich Corporation for$3,305,000 in cash. The fair value of the net identifiable assets of Heinrich was$3,000,000. Record amortization of goodwill.Note: Enter debits before credits.TransactionRecord entryGeneral JournalClear entryDebitCreditView general journal>Journal entry worksheet<1 2Included in the assets purchased from Heinrich was a patent valued at$92,400. The original legal life of the patent was 20 years; there are 12 yearsremaining, but UTS believes the patent will be useful for only eight more.years. Record amortization of the patent.Note: Enter debits before credits.Transactionb.Record entry32Journal entry worksheetTransactionC.3Note: Enter debits before credits.Record entryGeneral JournalClear entryUTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of$362,000. The contractual life of the franchise is 10 years. Recordamortization of the franchise rights.General JournalClear entryDebit< Required 1CreditDebitView general JournalCreditView general JournalRequired 2 >>

Journal Entry is the primary step to record the transaction in the books of accounts. Intangible…

Problem 7-6A (Algo) Record amortization and prepare the intangible assets section (LO7-5) The following information relates to the intangible assets of University Testing Services (UTS); a. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,306,000 in cash. The fair value of the net identifiable assets of Heinrich was $3,000,000. b. Included in the assets purchased from Heinrich was a patent valued at $92,400. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only eight more years. c. UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $362,000. The contractual life of the franchise is 10 years. Required: 1. Record amortization expense for the intangible assets at December 31, 2024. 2. Prepare the intangible asset section of the December 31, 2024, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Record amortization expense for the intangible assets at December 31, 2024. (If no entry is required for a transaction/event, select "No Journel Entry Required in the first account field.) View transaction liet Journal entry worksheet On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,305,000 in cash. The fair value of the net identifiable assets of Heinrich was $3,000,000. Record amortization of goodwill. Note: Enter debits before credits. Transaction A Record entry General Journal Clear entry Debit Credit View general Journal Journal entry worksheet < 1 2 Transaction b Included in the assets purchased from Heinrich was a patent valued at $92,400. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only eight more years. Record amortization of the patent. Note: Enter debits before credits. Record entry 3 General Journal Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction C. Record entry Clear entry UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $362,000. The contractual life of the franchise is 10 years. Record amortization of the franchise rights. General Journal Debit Clear entry Credit Debit View general Journal Credit View general journal >

Problem 7-6A (Algo) Record amortization and prepare the intangible assets section (LO7-5) The following information relates to the intangible assets of University Testing Services (UTS); a. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,306,000 in cash. The fair value of the net identifiable assets of Heinrich was $3,000,000. b. Included in the assets purchased from Heinrich was a patent valued at $92,400. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only eight more years. c. UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $362,000. The contractual life of the franchise is 10 years. Required: 1. Record amortization expense for the intangible assets at December 31, 2024. 2. Prepare the intangible asset section of the December 31, 2024, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Record amortization expense for the intangible assets at December 31, 2024. (If no entry is required for a transaction/event, select "No Journel Entry Required in the first account field.) View transaction liet Journal entry worksheet On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,305,000 in cash. The fair value of the net identifiable assets of Heinrich was $3,000,000. Record amortization of goodwill. Note: Enter debits before credits. Transaction A Record entry General Journal Clear entry Debit Credit View general Journal Journal entry worksheet < 1 2 Transaction b Included in the assets purchased from Heinrich was a patent valued at $92,400. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only eight more years. Record amortization of the patent. Note: Enter debits before credits. Record entry 3 General Journal Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction C. Record entry Clear entry UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $362,000. The contractual life of the franchise is 10 years. Record amortization of the franchise rights. General Journal Debit Clear entry Credit Debit View general Journal Credit View general journal >

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 62E

See similar textbooks