Purchase Solution

Recording and Amortization of Intangibles

Not what you're looking for?

Ask Custom Question

Rolanda Marshall Company, organized in 2006, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2007.

1/2/07 Purchased patent (8-year life) $ 350,000
4/1/07 Purchased goodwill (indefinite life) 360,000
7/1/07 Purchased franchise with 10-year life; expiration date 7/1/17 450,000
8/1/07 Payment of copyright (5-year life) 156,000
9/1/07 Research and development costs 215,000
Total $1,531,000

Instructions:
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, 2007, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.)

Purchase this Solution
Solution Summary

This solution provides answers in Excel for questions regarding recording and amortization of intangibles.

Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

View More Free Quizzes
Related BrainMass Solutions

  • E10-13 Journal Entries for the Herzogg Company

    Make the adjusting entries as of December 31, 2008, recording any necessary amortization and reflecting all balances accurately as of that date.

  • Recording and Amortizing Intangibles

    Hope this help, good luck with your classes, Suzanne The theory and practice of determining the amortization of certain intangibles such as goodwill and patents, including the method of creating journal entries for recordong amortization and how to

  • E11-4 Depreciation; E11-1 Change in Estimate; E12-6 Intangib

    E12-6 (Recording and Amortization of Intangibles) Rolanda Marshall Company, organized in 2006, has set up a single account for all intangible assets.

  • Reichenbach Co., organized in 2009, has set up a single acco

    Make the entries as of December 31, 2010, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore income tax effects.)

  • Entries to Record Amortization of Intangible Assets

    Make the entries as of December 31, 2010, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.)

  • Intangible Assets

    Make the entries as of December 31, 2002, recording any necessary amortization and reflecting all balances accurately as of that date.

  • A Company's Debt Entries

    Make the entries as of December 31, 2007, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.) Please see attached file for answers.

  • Financial Accounting Problems on Recording Intangible Assets

    Hootie and the Blow Fish Inc Balance Sheet- Partial December 31, 2002 Non- Current Assets: Intangibles: Patents $490,000 Less: Amortization $70,000 Net Patents $420,000 Goodwill $360,000 Franchise $420,000 Less: Amortization

  • Fundamental Accounting Principles

    Make the entries as of December 31, 2002, recording any necessary amortization and reflecting all balances accurately as of that date.

View More Related Solutions