ACC 281
Axia College of University of Phoenix (UoP)
Financial Accounting Transaction Analysis
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
ACC 281 Week Three Solution
Individual Assignment
E10-13 Prepare entries to set up appropriate accounts for different intangibles; amortize intangible assets
Herzogg Company, organized in 2008, has the following transactions related to intangible assets.
1/2/08 Purchased patent (7-year life) $560,000
4/1/08 Goodwill purchased (indefinite life) 360,000
7/1/08 10-year franchise; expiration date 7/1/2018 440,000
9/1/08 Research and development costs 185,000
Instructions
Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2008, recording any necessary amortization and reporting all intangible asset balances accurately as of that date.
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