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9-10 part b

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Problem 9-10A a-c (Part Level Submission) The intangible assets and goodwill reported by Pharoah Corporation at December 31, 2017, follow: Copyrights $32,700 Less: Accumulated amortization 16,350 $16,350 Trademarks 49,800 Goodwill 126,870 Total $193,020 A copyright (1) was acquired on January 1, 2016, and has a useful life of four years. The trademarks were acquired on January 1, 2014, and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually. The following cash transactions may have affected intangible assets and goodwill during 2018: Jan. 5 Paid $7,020 in legal costs to successfully defend the trademarks against Infringement by another company. July 1 Developed a new product, incurring $189,440 in research and $50,200 in development costs with probable future benefits. The product is expected to have a useful life of 20 years. Sept. 1 Paid $58,200 to a popular hockey player to appear in commercials advertising the company's products. The commercials will air in early September Oct. 1 Acquired another copyright (#2) for $187.280. The new copyright has a useful life of four years. Dec. 31 Determined the recoverable amount of the goodwill to be $85,280. There was no indication that the copyrights or trademarks were impaired. (a) Your answer is correct. Prepare journal entries to record the transactions. (Credit account titles are a utomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles d enter for the amounts. Record journal entries in the order presented in the problem.) Date Jan. 5 7020 TIT 1 7020) 1 July 1 189440 i JUN 50200 199140 1838 Account Titles and Explanation Trademarks cash Research Expenses cash (To record research expense) Development costs Cash (To record development costs) revertising Expense 1 cash Copyrights I Cash Impairment loss Dulya S0200 Sept. 1 s Dec. 31 Goodwill (b) Prepare any adjusting journal entries required at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Dec. 31 (To record amortization on copyrights acquired on Janus Dec. 31 (To record amortization on copyrights acquired on Dec. 31

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