80.2K

Verified Solution

Link Copied!

This question has three parts. thank you.

Exercise 12-6 Pharoah Company, organized in 2016, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2017. 1/2/17 4/1/17 7/1/17 8/1/17 9/1/17 Purchased patent (9-year life) Purchase goodwill (indefinite life) Purchased franchise with 10-year life; expiration date 7/1/27 Payment of copyright (5-year life) Research and development costs $475,200 365,600 456,000 120,000 241,000 $1,657,800 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Make the entry as of December 31, 2017, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Reflect all balances accurately as of December 31, 2017 Use straight-line amortization

Answer & Explanation Solved by verified expert

See Answer