Exercise 12-6 $388,800 369,900 438,000 174,000 229,000 $1,599,700 Reflect all ba

Question

Exercise 12-6

$388,800

369,900

438,000

174,000

229,000

$1,599,700

Reflect all balances accurately as of December 31, 2017.

Use Straight-line amortization

Attached is a list of accounts

Accounts Payable
Accounts Receivable
Advertising Expense
Amortization Expense
Buildings
Cash
Computer Software Costs
Copyrights
Discount on Bonds Payable
Equipment
Franchises
Goodwill
Income Summary
Intangible Assets
Interest Expense
Inventory
Land
Legal Fees Expense
Loss on Impairment
Long-term Notes Payable
No Entry
Notes Payable
Organization Expense
Paid-in Capital in Excess of Par - Common Stock
Patents
Patent Expense
Prepaid Rent
Recovery of Loss from Impairment
Rent Expense
Rent Receivable
Rent Revenue
Research and Development Expense
Retained Earnings
Trade Names
Trademarks

Exercise 12-6

Cullumber Company, organized in 2016, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2017.
1/2/17 Purchased patent (8-year life)

$388,800

4/1/17 Purchase goodwill (indefinite life)

369,900

7/1/17 Purchased franchise with 10-year life; expiration date 7/1/27

438,000

8/1/17 Payment of copyright (5-year life)

174,000

9/1/17 Research and development costs

229,000

$1,599,700

Explanation / Answer

Date Account titles and explanation Debit Credit 2017 Dec 31. Amorization expense 127200 Patent (388800/8) 48600 Franchise (438000/10) 43800 Copyright (174000/5) 34800 (Intangible expenses amortized) Balance as on December 31,2017: Pantent (388800-48600) 340200 Goodwill 369900 Franchise (438000-43800) 394200 Copyright (174000-34800) 139200 Research and development cost 229000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.