ACCOUNT-the necessary entries to record these intangibles
by ella | Aug 20, 2025 | Business
Gill Company, organized in 2015, has the following transactions related to intangible assets.
| 1/2/15 |
Purchased patent (7-year life) |
$595,000 |
| 4/1/15 |
Goodwill purchased (indefinite life) |
360,000 |
| 7/1/15 |
10-year franchise; expiration date 7/1/2025 |
480,000 |
| 9/1/15 |
Research and development costs |
185,000 |
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Your answer is partially correct. Try again. |
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Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2015, recording any necessary amortization. (Record journal entries in the order presented in the problem. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Account Titles and Explanation |
Debit |
Credit |
| 1/2/154/1/157/1/159/1/1512/31/15 |
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| 1/2/154/1/157/1/159/1/1512/31/15 |
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| 1/2/154/1/157/1/159/1/1512/31/15 |
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| 1/2/154/1/157/1/159/1/1512/31/15 |
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| 1/2/154/1/157/1/159/1/1512/31/15 |
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| SHOW LIST OF ACCOUNTS |
| LINK TO TEXT |
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Your answer is incorrect. Try again. |
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Calculate ending balances as at 12/31/15.
| Ending balances |
| Patents |
$ |
| Goodwill |
$ |
| Franchises |
$ |
| Research and Development Expense |
$
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