Complete this question by entering your answers in the tabs below. Required A Required B Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model. (In the Cash Flo operating activities, FA for financing activities, or IA for investing activity. Leave the cell blank if there is no effect. Assessment Tool iFrame to accoun all cells will require entry.) Event Acquisition Amortization Assets Cash + Patent 86,400 + + + Balance Sheet + Goodwill + + + DYNAMO MANUFACTURING Horizontal Statements Model = Liabilities + Equity Revenue = + 86,400 + + Income Statement Expense ||||||||| = Net Income Statement of Cash Flows IA
Complete this question by entering your answers in the tabs below. Required A Required B Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model. (In the Cash Flo operating activities, FA for financing activities, or IA for investing activity. Leave the cell blank if there is no effect. Assessment Tool iFrame to accoun all cells will require entry.) Event Acquisition Amortization Assets Cash + Patent 86,400 + + + Balance Sheet + Goodwill + + + DYNAMO MANUFACTURING Horizontal Statements Model = Liabilities + Equity Revenue = + 86,400 + + Income Statement Expense ||||||||| = Net Income Statement of Cash Flows IA
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section19.6: Buying Intangible Assets And Calculating Amortization Expense
Problem 1OYO
Related questions
Question
Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items:
| Patent with 4 remaining years of legal life | $ | 31,000 |
| 42,000 | ||
Dynamo’s financial condition just prior to the acquisition of these assets is shown in Required B.
Required
-
Compute the annual amortization expense for these items.
-
Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required A Required B
Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model. (In the Cash Flo
operating activities, FA for financing activities, or IA for investing activity. Leave the cell blank if there is no effect. Assessment Tool iFrame to accoun
all cells will require entry.)
Event
Acquisition
Amortization
Assets
Cash + Patent
86,400
+
+
+
Balance Sheet
+ Goodwill
+
+ +
DYNAMO MANUFACTURING
Horizontal Statements Model
= Liabilities + Equity Revenue
=
+ 86,400
+ +
Income Statement
Expense
|||||||||
=
Net
Income
Statement of Cash
Flows
IA
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