Selected accounts of the zelma company are listed below. On jan 1, 2013, the onl

Question

Selected accounts of the zelma company are listed below. On jan 1, 2013, the only intangible asset in the company's account was Goodwill. This was recorded in 2006 when the company acquired another company and paid $200,000 more than fair market value of the net identifiable tangible assets acquired. . For two years, the company amortized the costs on the basis of a 40-years life, charging a total of $20,000 to an account called Amortization Expense-Goodwill. However, no amortization of goodwill has been recorded since 2007. Below are transaction and events of 2013. Transactions and other information 1.on may 1O,2013, the company paid $192,000 to purchase a product formula, expected useful life 8 years. 2.on july 5, paid $640,000 for a patent having a useful life of 10 years. 3. On september 22, purchased a unique computer program for $240,000; estimated useful life 5 years. 4. During the year,the company recorded various cash expenditured of $210,00 for labor and supplies used in its research department. ( date entry december 31.). 5. At the end of 2013, the company reviewed the goodwill shown in the accounts. Based on the profibility of activities acquired in purchasing the other business, the owners of the business think the goodwill has a value of $150,000 and should be of benefit for many more years. A. Record the transactions for 2013 in a general journal form. B. record amortization of the intangible assets, where appropriate, for the years eneded december 31, 2013. C. Record impairment of assets where appropriate on december 31,2012. Accoutns: cash, computer software,patents, product formulas, goodwill,amortization expense-patents, amortization expense-computer software, amortization expense- product formulas, impairment of intagiables. D. Bsed on the transactions what is the total net value of zelma companys intangiable assets of 2013?

Explanation / Answer

.Skip all the info at the top and jump directly to the questions, there's no way to memorize all that info. :)Next, they use the words intangible assets a lot. Remember an intangible asset is something that is not physically real like a patent or trademark.A. Excel should have general journal form.B. I quote Investopedia "ammortization-The paying off of debt in regular installments over a period of time."C.asset impairment-- basically a decline

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