Question

Oriole Limited organized late in 2019 and set up a single account for all intangible assets. The following summary shows the entries in 2020 (all debits) that have been recorded in Intangible Assets since then: Jan. 2 Purchased patent (8-year life) $335,000 Mar. 31 Costs to search for new ways to apply patent that was purchased on Jan. 2 21,000 Apr. 1 Purchased goodwill (indefinite life) 305,000 July 1 Purchased franchise with 10-year life; expiration date July 1, 2030 251,000 1 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 33,000 Aug. 1 Payment for copyright (5-year life) 130,800 1 Purchased trademark (3-year life) 14,400 1 Purchased customer list (2-year life) 9,600 Sept. 1 Research costs 236,000 $1,335,800

Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Show List of Accounts Link to Text Link to Text Link to Text Link to Text

Make the entry as at December 31, 2020, for any necessary amortization so that all balances are accurate as at that date. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Show List of Accounts Link to Text Link to Text Link to Text Link to Text

Provide the asset amounts reported on the December 31, 2020 statement of financial position. (Round answers to 0 decimal places, e.g. 5,275.) Patents enter a dollar amount rounded to 0 decimal places Franchise enter a dollar amount rounded to 0 decimal places Copyright enter a dollar amount rounded to 0 decimal places Trademark enter a dollar amount rounded to 0 decimal places Customer list enter a dollar amount rounded to 0 decimal places Goodwill enter a dollar amount rounded to 0 decimal places

Answer 1

Account Titles and Explanation	Debit	Credit
Patents	335000
Goodwill	305000
Franchise	251000
Copyright	130800
Trademark	14400
Customer list	9600
Promotional expense	54000
Research and development expense	236000
Intangible assets		1335800

Amortization:

Account Titles and Explanation	Debit	Credit
Amortization expense	69325
Patents ($335000/8)		41875
Franchise ($251000 x 1/10 x 6/12)		12550
Copyright ($130800 x 1/5 x 5/12)		10900
Trademark ($14400 x 1/3 x 5/12)		2000
Customer list ($9600 x 5/24)		2000

December 31. 2020 balances:

Patents ($335000 - $41875)	$ 293,125
Franchise ($251000 - $12550)	$ 238,450
Copyright ($130800 - $10900)	$ 119,900
Trademark ($14400 - $2000)	$           12,400
Customer list ($9600 - $2000)	$             7,600
Goodwill	$ 305,000