Sage Hill, Inc., spent $91,000 in attorney fees while developing the trade name of its new product, the Mean Bean Machine. Prepare the journal entries to record the $91,000 expenditure and the first year’s amortization, using an 10-year life. Use the account title "Trade Names".

Q: The company pays its landlord $750,000 for next year’s rent for the office building.  Provide the…

A: If rent is paid in advance then it is called as prepaid rent.

Q: Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On…

A: The cost of fixed ads includes the acquisition cost, freight cost, installation charges or other…

Q: On June 30, Collins Management Company purchased land for $720,000 and a building for $1,080,000,…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: The draft financial statements of Blue Oak Investments for the year to 31 December 20X9 are being…

A: Investment Property The initial recognition of investment property which was incurred with the cost…

Q: For each of the following unrelated situations, calculate the annual amortization expense and…

A: a. Amortization expense for patent = Purchase cost / commercially exploitable life = $350,000 / 8…

Q: Epsilon is an entity which prepares financial statements, in accordance with International Financial…

A: Purchase of machine:   The cost of purchasing the machine from the foreign supplier (20 million…

Q: Bob the Builder purchases a piece of equipment on July 1, Year 5. The equipment has 5-year useful…

A: Statement for Calculation of Initial Cost to be Recognized Year  Cash Flow PV Factor @4% PV  0…

Q: On December 1, 2016, Goetz Corporation leased office space for 10 years at a monthly rental of…

A: Depreciation on walls and office = Total cost / lease period = 495000/10 years = P49,500

Q: On January 1, 2021, Famous Inc. acquired a piece of equipment for a list price of $340,000. It paid…

A: PLEASE LIKE THE ANSWER   1. Date  Particulars  Debit ($)  Credit ($)  2021…

Q: Assume that in January 20X6, a Hotcake House restaurant purchased a building, paying $57,000 cash…

A: Income statement refers to those financial statements of a company which shows the revenues and…

Q: lerina is a restaurant owner in Burwood, VIC. The business prepaid the insurance premium a year in…

A: Prepaid insurance premium is the amount of insurance premium paid in advance.

Q: On June 1, 2018, Martinez spent $8,280 to successfully prosecute a patent infringement suit. As a…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: A pharmaceutical company purchased a patent for a new drug October 1 for $1,000,000. The remaining…

A: Amortization expenses are charged to the intangible assets. basically, it reflects the consumption…

Q: Sheffield Landscaping began construction of a new plant on December 1,2020. On this date, the…

A: An asset is not just valued at the amount paid to acquire it but all the expenses that incur with…

Q: SE9-7. Amortization Expense Smith & Daughters obtained a patent for a new optical scanning device.…

A: Calculation of amortization expenses: Amortization Expenses = Patent CostUseful life=$9000012=$7,500…

Q: On February 1, 2018, Innovation Company purchased a patent for $72,000 cash. Although the patent…

A:

Q: On June 30, 2016, Kimberly Farms purchased custom-made harvesting equipment from a local producer.…

A: Determine the initial value of the equipment.

Q: Explain how you would decide whether to record each of the following expenditures as an asset or an…

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: On January 1, Snipes Construction paid for earth-moving equipment by issuing a $300,000, 3-year note…

A: Determine the amount at which Snipes record the equipment and note.

Q: At the end of the year the Investment in Bacolod account of the home office is P300,500. However,…

A: Branch accounting is a type of bookkeeping where distinct accounts are maintained for each branch or…

Q: Sheffield Corp. purchases a patent for $315,000 on January 2, 2022. Its estimated useful life is 18…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: i) Calculate and apportion the Hire Purchase interest over the relevant periods using the sun of the…

A: Hire Purchase Price=Down Payment+Number of instalment×Half Yearly Instalment=32,000+4×32,000=160,000…

Q: In April, F. W. Lang Company purchased an ice cream freezer and refrigeration compressor unit from…

A: As per the case, the seller will prevail due to the following reasons:   The buyer is required to…

Q: ristar Production Company began operations on September 1, 2021. Listed below are a number of…

A: Journal: Recording of a business transactions in a chronological order.

Q: On January 1, 2021, The Donut Stop purchased a patent for $75,000. At that time, the remaining legal…

A: 1. Date General Journal Debit Credit Jan 01, 2021 Patent $75,000                Cash…

Q: On December 5, 2020, Kara Corp purchased a machinery from a dealer paying P2,310,000 cash. In…

A: The cost of fixed assets are recorded after making adjustments for transport cost, or other…

Q: Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe.…

A: As per IAS 16, the assets are acquired, and consideration is deferred, the cash market price of such…

Q: A patent was acquired from another company on January 1, 2019, for $25,000.The useful life is 10…

A: Amortisation is reduction in the value of intangible assets like patents…

Q: Damian is an entity which prepares financial statements, in accordance with International Financial…

A: Calculation of Cost / Book Value of Machine to be shown in books: Particulars Amount (£) Cost…

Q: Ivanhoe Company purchased land, a building, and equipment on January 2, 2021, for $940,000. The…

A: Total  estimated value of land, building and equipment = $388000 +$446200+$135800 =$970,000

Q: Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. Assume the company…

A: Long-term notes payable: Long-term notes payable represent a legal and written promise made by the…

Q: On January​1, Orange Manufacturing paid $40,000 for a patent. Although it gives legal protection for…

A: Amortization is a reduction in the value of assets due to the usage of that asset.We can evaluate it…

Q: POPPY Company had the following transactions pertaining to its new office building: Purchase price…

A:

Q: Pueblo Co. acquires machinery by paying $10,000 cash and signing a $5,000, 2-year,…

A:

Q: On January 2, 2021, Teal Mountain Company purchased a patent for $47,800. The patent has an…

A: Solution: As useful life is more than legal life, therefore patent will be amortized over its legal…

Q: Epsilon is an entity which prepares financial statements, in accordance with International Financial…

A:

Q: On August 1, 2018, Banco Company purchased a new machine on a deferred payment basis. A down payment…

A: The total cost for fixed that is to be capitalized includes purchasing price, transfer cost and…

Q: DAFFODIL Company had the following transactions pertaining to its new office building: Purchase…

A: Capital expenditure and Revenue expenditure are two type of expenditure in business. Capital…

Q: Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made…

A: 1.

Q: A patent that was acquired for $800,000 at the beginning of the current year expires in 20 years and…

A: Amortization expense = Cost of the patent / Useful life of the patent

Q: Metlock, Inc., spent $48,600 in attorney fees while developing the trade name of its new product,…

A: An attorney fees is the legal fees or compensation paid to the lawyer for any legal services.

Q: Cullumber Limited purchased a machine on account on April 1,2021, at an invoice price of $332,350.…

A: Depreciation- The term depreciation refers to an accounting process used to distribute the price of…

Q: How much should be capitalized as cost of the machine? a. 2,300,000 c. 2,323,000 b. 2,320,000 d.…

A: Cost of machine includes cash purchase price of machine and other relevant  costs such as non…

Q: Banco Company acquired a new machine on a delayed payment basis on August 1, 2018. A down payment of…

A: A cost is the worth of money that has been used up to create something or supply a service and is…

Q: On January 4, 2016, Franc Company purchased for $30,000 a patent that had been filed 8 years…

A: Amortization means reducing the book value of an intangible asset regularly. It is spreading the…

Q: Stephan Curry, Inc., spent $68,000 in attorney fees while developing the trade name of its new…

A:

Q: Holt Industries received a $2,000 prepayment from the Ramirez Company for the sale of new office…

A: