Necessary entries to record the intangibles related problem


Problem:

Hootie and the Blow Fish, Inc., organized in 2002, has the following transactions related to intangible assets.

1/2/02 Purchased patent (7-year life) $490,000

4/1/02 Goodwill purchased (indefinite life) 360,000

7/1/02 10-year franchise; expiration date 7/1/2012 420,000

9/1/02 Research and development costs 185,000

Instructions Using Microsoft Excel

Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the entries as of December 31, 2002, recording any necessary amortization and reflecting all balances accurately as of that date.

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Accounting Basics: Necessary entries to record the intangibles related problem
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