2) A companys legal department received notice that a patent giving the company the exclusive...
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Accounting
2) A companys legal department received notice that a patent giving the company the exclusive right to see a new type of software was approved. It is believed that the patent will produce annual sales of $200,000 per year if there is demand for the software. Assume a discount rate of 7% compounded annually.
Required: What value should the patent account be created at if the company has predicted that the demand for the software will last for approximately 4 years?
3) Required: Prepare the following journal entries in good form:
a) Sold inventory for cash, $3,500. The cost of the inventory was $2,000.
b) Received a $150 invoice from the local newspaper requesting payment for an advertisement that the Company
c) Purchased equipment on account for $5,500 from the Marshall Company. The full amount is due in 10 days.
d) Received $4,000 from customers on account.
e) Paid $3,000 of the amount due to Marshall Company.
What is the total amount of liabilities owed as a result of the 5 transaction above?
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