On January 1, 2022, Blossom Company had a balance of $416,500 of goodwill on its balance sheet...

Question:

On January 1, 2022, Blossom Company had a balance of $416,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions.

Jan. 2 Purchased a patent (5-year life) $337,050
July 1 Acquired a 9-year franchise; expiration date July 1, 2031 $568,800
Sept. 1 Research and development costs $180,500

Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash.

(Record entries in the order displayed in the problem statement.)

Entry Statement For A Company Balance:

For a particular firm undergoing certain transaction the balance sheet or the record of the firm is constructed by entering the correct value of the expenditure done on a particular thing on a particular date.

Answer and Explanation:

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