During 2013, Ayayai Corporation spent $175,680 in research and development costs

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During 2013, Ayayai Corporation spent $175,680 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2013, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $49,680 related to the patent were incurred as of October 1, 2013.

Secure https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni Exercise 12-9 During 2013, Ayayai Corporation spent $175,680 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2013, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $49,680 related to the patent were incurred as of October 1, 2013. Prepare all journal entries required in 2013 and 2014 as a result of the transactions above. (Round answers to 0 decimal places, e.g. 8,564. 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 2013 Research and Development Expense Debit Credit 175680 cash 175680 To record research and development expenses) 2013 Legal Fees Expense Patents To record legal expenses) 2013 Amortization Expense (To record amortization expense) 2014 On June 1, 2015, Ayayai spent $40,320 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2015. Prepare all journal entries required in 2015 and 2016. (Round answers to O decimal places, e.g. 8,564. 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.) Date Account Titles and Explanation Debit Credit 2015 (To record patents) 2015

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Year Account Tittle & Explanation Debit Credit 2013 Research and development expenses $175,680                    Cash $175,680 To Record R&D Expense 2013 Patents $49,680                    Cash $49,680 To Record Legal expense 2013 Amortization expense $1,242                 Patents ($49680/10/12*3) $1,242 To Record Amortization 2014 Amortization expense $4,968                 Patents ($49680/10) $4,968 To Record Amortization

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