Exercise 9-15 On January 1, 2022, Sandhill Co. had a balance of $411,000 of goodwill on...

Exercise 9-15

On January 1, 2022, Sandhill Co. had a balance of $411,000 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill h indefinite life. During 2022, the company had the following additional transactions.

Jan. 2 Purchased a patent (7-year life) $307,650.

July 1 Acquired a 9-year franchise; expiration date July 1, 2,031, $576,000.

Sept. 1 Research and development costs $178,500.

Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (Record entries in the order displayed in the problem sta Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the accoun and enter o for the amounts.)

Make an entry as of December 31, 2022, recording any necessary amortization. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when the 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.)

Indicate what the intangible asset account balances should be on December 31, 2022.

Solutions

Expert Solution

2.As on December 31

Journal entries

Amortization expense. 75,950

Franchise. 43950

Patent. 32000

3. Patents = 307650-43950

= 263700

Franchise. =576000-32000

=. $544000

Thank you

I hope you understand

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Sandhill Co. had the following assets on January 1, 2022. ItemCostPurchase DateUseful Life (in years)Salvage Value...

Sandhill Co. had the following assets on January 1, 2022. ItemCostPurchase DateUseful Life (in years)Salvage Value Machinery $79,000Jan. 1, 201210$ 0 Forklift 38,000Jan. 1, 201950 Truck 44,400Jan. 1, 201783,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,800. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets....

On January 1, 2022, Pharoah Company had a balance of $395,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year.

On January 1, 2022, Pharoah Company had a balance of $395,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions. Jan. 2 Purchased a patent (7-year life) $351,750. July 1 Acquired a 10-year franchise; expiration date July 1, 2,032, $604,800. Sept. 1Research and development costs $177,000. (a) Prepare the necessary entries to record the transactions related to intangibles. All costs incurred...

Problem 10-01A On January 1, 2022, the ledger of Sandhill Co. contained these liability accounts. Accounts...

Problem 10-01A On January 1, 2022, the ledger of Sandhill Co. contained these liability accounts. Accounts Payable $44,600 Sales Taxes Payable 8,700 Unearned Service Revenue 21,100 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,360, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $13,600. (Credit Service Revenue.) 14 Paid state treasurer’s department...

At January 1, 2022, Sandhill Co. reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings...

At January 1, 2022, Sandhill Co. reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $60,700,000 Accumulated depreciation—equipment 54,600,000 Buildings 97,400,000 Equipment 150,800,000 Land 21,000,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. During 2022, the following selected transactions occurred:...

Wildhorse Co. sold $3,200,000, 9%, 10-year bonds on January 1, 2022. The bonds were dated January...

Wildhorse Co. sold $3,200,000, 9%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. Prepare the journal entries to record interest expense for 2022 under both of the bond issuances assuming they sold at: (1) 101 and (2) 98. Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 101 at...

Sandhill Corp. is a manufacturer of truck trailers. On January 1, 2021, Sandhill Corp. leases 9...

Sandhill Corp. is a manufacturer of truck trailers. On January 1, 2021, Sandhill Corp. leases 9 trailers to Blue Company under a 5-year noncancelable lease agreement. The following information about the lease and the trailers is provided: 1. Equal annual payments that are due on January 1 each year provide Sandhill Corp. with an 11% return on net investment. 2. Titles to the trailers pass to Blue at the end of the lease. 3. The fair value of each trailer...

Sandhill Corp. is a manufacturer of truck trailers. On January 1, 2021, Sandhill Corp. leases 9...

Sandhill Corp. is a manufacturer of truck trailers. On January 1, 2021, Sandhill Corp. leases 9 trailers to Whispering Company under a 5-year noncancelable lease agreement. The following information about the lease and the trailers is provided: 1. Equal annual payments that are due on January 1 each year provide Sandhill Corp. with a 12% return on net investment. 2. Titles to the trailers pass to Whispering at the end of the lease. 3. The fair value of each trailer...

The Sandhill Hotel opened for business on May 1, 2022. Here is its trial balance before...

The Sandhill Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. SANDHILL HOTEL Trial Balance May 31, 2022 Debit Credit Cash $ 2,523 Supplies 2,600 Prepaid Insurance 1,800 Land 15,023 Buildings 72,400 Equipment 16,800 Accounts Payable $ 4,723 Unearned Rent Revenue 3,300 Mortgage Payable 38,400 Common Stock 60,023 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 $115,446 $115,446 Other data: 1. Insurance expires at the...

This is a partial adjusted trial balance of Sandhill Co..

This is a partial adjusted trial balance of Sandhill Co.. SANDHILL CO. Adjusted Trial Balance January 31, 2022 SuppliesDebit CreditPrepaid Insurance$880Salaries and Wages Payable1,620Unearned Service Revenue$1,010Supplies Expense860Insurance Expense540Salaries and Wages Expense1,800Service Revenue870Prepare the closing entries at January 31, 2022. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

On July 31, 2020, Sandhill Co. had a cash balance per books of $6,340.00. The statement...

On July 31, 2020, Sandhill Co. had a cash balance per books of $6,340.00. The statement from Dakota State Bank on that date showed a balance of $7,890.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank service charge for July was $21.00. 2. The bank collected $1,720 for Sandhill Co. through electronic funds transfer. 3. The July 31 receipts of $1,397.30 were not included in the bank deposits for July. These...

Subjects