9:10 PM edugen wileyplus.com 75% CALCULATOR BACK NEXT ES Problem 9-4A The intang

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9:10 PM edugen wileyplus.com 75% CALCULATOR BACK NEXT ES Problem 9-4A The intangible assets section of Cepeda Corporation's balance sheet at December 31, 2012, is presented here. Patents ($74,000 cost less $7,100 amortization) Copyrights ($62,400 cost less $50,900 amortization)11,500 Total $66,900 $78.400 The patent was acquired in January 2012 and has a useful life of 10 years. The copyright was acquired in January 2006 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2013. Jan. 2 Paid $36,000 legal costs to successfully defend the patent against infringement by another company. Jan.- June Developed a new product, incurring $254,400 in research and development costs. A patent was granted for the Sept. 1 Paid $60,500 to a quarterback to appear in commercials advertising the company's products. The commercials Oct. i Acquired a copyright for $286,000. The copyright has a useful life and legal life of 50 years (a) product on July 1, and its useful life is equal to its legal Iife of 20 years. Legal and other costs for the patent were $30,000 will air in September and October Prepare journal entries to record the transactions. (Record entries in the order displayed in the problem statement. dy Credit account titiles are automatically indented when amount is entered. Do not indent manually.) Accsut Titles and Explanation

Explanation / Answer

2nd Jan

Patents A/c Dr. 36000

To Cash A/c Cr. 36000

Jan - June

Reseach & Development A/c Dr. 254400

To Cash A/c Cr. 254400

July 1

Patents A/c Dr. 30000

To Cash A/c Cr. 30000

Sep 1

Advertising Expense A/c Dr. 60500

To Cash A/c Cr. 60500

Oct 1

Copyright A/c Dr. 286000

To Cash A/c Cr. 286000

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