Question

Exercise 12-09 During 2016, Martinez Corporation spent $155,520 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, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $28,080 related to the patent were incurred as of October 1, 2016.

Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (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 Debit Credit 2016 enter an account title to record research and development expenses enter a debit amount enter a credit amount enter an account title to record research and development expenses enter a debit amount enter a credit amount (To record research and development expenses) 2016 enter an account title to record legal expenses enter a debit amount enter a credit amount enter an account title to record legal expenses enter a debit amount enter a credit amount (To record legal expenses) 2016 enter an account title to record amortization expense enter a debit amount enter a credit amount enter an account title to record amortization expense enter a debit amount enter a credit amount (To record amortization expense) 2017 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

On June 1, 2018, Martinez spent $8,280 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2018. Prepare all journal entries required in 2018 and 2019. (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 Debit Credit 2018 enter an account title to record patents enter a debit amount enter a credit amount enter an account title to record patents enter a debit amount enter a credit amount (To record patents) 2018 enter an account title to record amortization expense enter a debit amount enter a credit amount enter an account title to record amortization expense enter a debit amount enter a credit amount (To record amortization expense) 2019 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

In 2020, Martinez determined that a competitor’s product would make the New Age Piano obsolete and the patent worthless by December 31, 2021. Prepare all journal entries required in 2020 and 2021. (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.) 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

Answer 1