90.2K

Verified Solution

Link Copied!

The Horstmeyer Corporation commenced operations early In 2018. A number of expenditures were made during 2018 that were deblted to one account called intangible asset. A recap of the $223,000 balance In thls account at the end of 2018 Is as follows: Transaction Date 2/3/18 State incorporation fees and legal costs related to organizing the corporation 3/1/18 Fire insurance premium for three-year period 3/15/18 Purchased a copyright 4/30/18 Research and development costs 6/15/18 Legal fees for filing a patent on a new product resulting from an R&D project 9/38/18 Legal fee for successful defense of patent developed above $ 10,0e 5,880 35,998 55,998 5,880 27,800 55,00e 18/13/18 Entered into a 1e-year franchise agreement with franchisor Various Advertising costs Total $223,80e Requlrec Prepare the necessary Journal entry to clear the Intangible asset account and to set up accounts for separate Intangible assets, other types of assets, and expenses Indicated by the transactions. (If no entry is requlred for a transactlon/event, select "No Journal entry required" In the first account field.) View transaction list Journal entry worksheet Record the entry to reclassify various expenditures incorrectly charged to the intangible asset account. Note: Enter debits before credits Transaction General Journal Debit Credit

Answer & Explanation Solved by verified expert

See Answer