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    Latihan - Aset Tidak Berwujud-JAWAB

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    Andreas Hotto
    1) Brandon Corporation purchased Mills Company by paying €280,000 cash and issuing €220,000 notes payable. 2) Brandon recorded the acquisition by increasing various asset and liability accounts. Goodwill of €145,000 was also recorded. 3) At year-end, Brandon recorded €2,500 of amortization expense for the trademarks acquired, which have a 4-year useful life.

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    Latihan - Aset Tidak Berwujud-JAWAB

    Uploaded by

    Andreas Hotto
    247 views7 pages
    1) Brandon Corporation purchased Mills Company by paying €280,000 cash and issuing €220,000 notes payable. 2) Brandon recorded the acquisition by increasing various asset and liability accounts. Goodwill of €145,000 was also recorded. 3) At year-end, Brandon recorded €2,500 of amortization expense for the trademarks acquired, which have a 4-year useful life.

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    Latihan_Aset Tidak Berwujud-JAWAB

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    1) Brandon Corporation purchased Mills Company by paying €280,000 cash and issuing €220,000 notes payable. 2) Brandon recorded the acquisition by increasing various asset and liability accounts. Goodwill of €145,000 was also recorded. 3) At year-end, Brandon recorded €2,500 of amortization expense for the trademarks acquired, which have a 4-year useful life.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    247 views7 pages

    Latihan - Aset Tidak Berwujud-JAWAB

    Uploaded by

    Andreas Hotto
    1) Brandon Corporation purchased Mills Company by paying €280,000 cash and issuing €220,000 notes payable. 2) Brandon recorded the acquisition by increasing various asset and liability accounts. Goodwill of €145,000 was also recorded. 3) At year-end, Brandon recorded €2,500 of amortization expense for the trademarks acquired, which have a 4-year useful life.

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    © All Rights Reserved
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    Latihan_1

    The intangible assets section of Redeker Company at December 31, 2019, is presented bellow:

    Patent ($60,000 cost less $6,000 amortization) $ 54,000


    Franchise ($48,000 cost less $19,200 amortization) 28,800
    $ 82,800

    The patent was acquired in January 2019 and has useful life of 10 years. The franchise was
    acquired in January 2016 and also has a useful life of 10 years.

    The following cash transactions may have affected intangible assets during 2020:

    Jan., 2: Paid $36,000 legal cost to successfully defend the patent against infringament by
    another company
    Jan. - June: Developed a new product, incuring $140,000 in research costs. A patent was granted for
    the product on July 1. Its useful life is equal to its 20-year legal life
    Sept. 1: Paid $58,000 to an extremely large defensive lineman to appear in commercials adverti-
    sing the company's products. The commercials will air in September and October
    Oct. 1: Acquired a franchise for $100,000 The franchise has a useful life of 50 year

    Instructions:

    (a) Journal entries for 2020 transactions

    Jan., 2: Patent $ 36,000


    Cash $ 36,000

    Jan - June : Research expense 140,000


    Cash 140,000

    Sept., 1: Prepaid Advertising 58,000


    Cash 58,000

    Oct., 1: Franchise 100,000


    Cash 100,000

    (b) Adjusting entries to record the 2020 amortization expense

    Dec., 31:Amortization Expense - Patent $ 10,000


    Patent $ 10,000

    Amortization Expense - Franchise 5,300


    Franchise 5,300
    Computation of Amortization Expense
    Amortization Expense - Patent:
    (54,000 + 36,000) : 9 = $ 10,000

    Amortization Expense - Franchise:


    (48,000 : 10) +{ (100,000 : 50)x 3/12} = $ 5,300

    (c) The intangible assets section of Redeker Company at December 31, 2020

    Patent ($96,000 cost less $16,000 amortization) $ 80,000


    Franchise ($148,000 cost less $24,500 amortization) ### 123,500
    $ 203,500

    Book Value computated of Ingtangible Assets

    Patent
    2019 2020
    Cost: 60,000 36,000 96,000
    Amortization: 6,000 10,000 16,000
    Book value 80,000

    Franchise
    2019 2020
    Cost: 48,000 100,000 148,000
    Amortization: 19,200 5,300 24,500
    Book value 123,500
    4800
    4
    19200
    Latihan_2

    On July 1, 2020, Brandon Corporation purchased Mills Company by paying €280,000


    Notes Payable. At July 1, 2020, the statement of financial position of Mill Companya was as fol

    Mills Company
    STATEMENT OF FINANCIAL POSITION
    As of July 1, 2020
    Building (net) € 125,000 Equity
    Equipment (net) 50,000 Accounts Payable
    Trademarks 15,000 Total Equity and Liability
    Land 50,000
    Inventory 80,000
    Accounts Receivable 125,000
    Cash 40,000
    Total assets € 485,000

    The recorded amount all approximate current values except for:


    Land (fair value) of
    Inventory (fair value) of
    Trademarks (fair value) of
    Instruction
    a. Prepare the July 1 entry for Brandon Corporation to record the purchase
    b. Prepare the December 31 entry for Brandon Corporation to record amortization of int
    The trademarks have an estimated useful life of 4 years with a residual value of €5,000

    2020
    July 1 Building € 125,000
    Equipment 50,000
    Land 75,000
    Trademarks 25,000
    Goodwill 145,000
    Inventory 115,000
    Accounts Receivable 125,000
    Cash 40,000
    Cash € 280,000
    Accounts Payable 200,000
    Notes Payable 220,000

    2020
    Dec., 31 Amortization Expense € 2,500
    Trademarks € 2,500
    ny by paying €280,000 cash and issuing €220,000
    ill Companya was as follows.

    POSITION

    € 285,000
    unts Payable 200,000
    Equity and Liability € 485,000

    € 75,000
    € 115,000
    € 25,000

    e purchase
    cord amortization of intangible.
    residual value of €5,000

    Computation cost of Goodwill


    Building (net) € 125,000
    Equipment (net) 50,000
    Trademarks 25,000
    Land 75,000
    Inventory 115,000
    Accounts Receivable 125,000
    Cash 40,000
    Total assets € 555,000
    Total liabilities € 200,000
    FV of net identifiable assets € 355,000
    Purchase price 500,000
    Value assigned goodwill € 145,000

    Computation of amortization expense.


    Cost of trademarks 25,000
    Residual value 5,000
    20,000
    Estimated usefull life 4
    5,000

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