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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fromChapter 4 / Lesson 9