As the recently appointed auditor for Bramble Corporation, you have been asked to examine selected accounts before the 6-monthfinancial statements of June 30, 2020, are prepared. The controller for Bramble Corporation mentions that only one account is keptfor intangible assets. The account is shown below.Intangible AssetsDebitCreditBalanceJan. 4Research and development costs932,000932,000Jan. 5Legal costs to obtain patent72,4801,004,480Jan. 31Payment of 7 months' rent on propertyleased by Bramble85,4001,089,880Feb. 11Premium on common stock232,000857,880March 31Unamortized bond discount on bondsdue March 31, 204088,800946,680April 30Promotional expenses related tostart-up of business216,8001,163,480June 30Operating losses for first 6 months247,5001,410,980Prepare the entries necessary to correct this account. Assume that the patent has a useful life of 10 years. (Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter O for the amounts.)Account Titles and ExplanationDebitCredit Intangible Assets1004480cash1004480Rent Expense8540085400Intangible AssetsIntangible Assets232000Paid-in Capital in Excess of Par - Common Stock232000Discount on Bonds Payable88800Intangible Assets88800Amortization Expense216800Intangible Aşsets216800(To correct the account)Amortization Expense247500Intangible Assets247500(To record amortiztion expense)

Financial transactions are initially recorded in the form of journal entries.

As the recently appointed auditor for Bramble Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2020, are prepared. The controller for Bramble Corporation mentions that only one account is kept for intangible assets. The account is shown below.

As the recently appointed auditor for Bramble Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2020, are prepared. The controller for Bramble Corporation mentions that only one account is kept for intangible assets. The account is shown below.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 6AP

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As the recently appointed auditor for Cheyenne Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2020, are prepared. The controller for Cheyenne Corporation mentions that only one account is kept for intangible assets. The account is shown below. Jan. 4 Jan. 5 Jan. 31 Feb. 11 March 31 April 30 June 30 Intangible Assets Research and development costs Legal costs to obtain patent Payment of 7 months' rent on property leased by Cheyenne Premium on common stock Unamortized bond discount on bonds due March 31, 2040 Promotional expenses related to start-up of business Operating losses for first 6 months Debit 934,000 72,960 86,800 93,600 228,800 259,000 Credit 234,000 Balance 934,000 1,006,960 1,093,760 859,760 953,360 1,182,160 1,441,160 Prepare the entries necessary to correct this account. Assume that the patent has a useful life of 10 years. (Credit account titles are automatically indented when amount is entered. Do not…
As the recently appointed auditor for Bramble Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2020, are prepared. The controller for Bramble Corporation mentions that only one account is kept for intangible assets. The account is shown below. Intangible Assets Debit Credit Balance Jan. 4 Research and development costs 932,000 932,000 Jan. 5 Legal costs to obtain patent 72,480 1,004,480 Jan. 31 Payment of 7 months' rent on property leased by Bramble 85,400 1,089,880 Feb. 11 Premium on common stock 232,000 857,880 March 31 Unamortized bond discount on bonds due March 31, 2040 88,800 946,680 April 30 Promotional expenses related to start-up of business 216,800 1,163,480 June 30 Operating losses for first 6 months 247,500 1,410,980 Prepare the entries necessary to correct this account. Assume that the patent has a useful life of 10 years. (Credit account titles are automatically indented when amount is entered. Do not indent…
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