Hi there, can help with answering the attached questions, thanks so much. The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that weredebited to one account called Intangible asset. A recap of the $207,500 balance in this account at the end of 2021 is as follows:DateTransactionFebruary 3 State incorporation fees and legal costs related to organizing the corporationFire insurance premium for three-year periodPurchased a copyrightResearch and development costsLegal fees for filing a patent on a new product resulting from an R&D projectLegal fee for successful defense of patent developed aboveEntered into a 10-year franchise agreement with franchisorAdvertising costsTotalMarch 1March 15April 30June 15September 38October 13VariousRequired:Prepare the necessary Journal entry to clear the Intangible asset account and to set up accounts for separate intangible assets, othertypes of assets, and expenses Indicated by the transactions. (If no entry is required for a transaction/event, select "No Journal entryrequired" in the first account field.)View transaction listJournal entry worksheet<Record the entry to reclassify various expenditures incorrectly charged to theintangible asset account.Note: Enter debits before credits.Transaction1Record entryGeneral JournalClear entryDebit CreditAmount$ 8,5007,50032,00052,0003,50024,00052,00028,000$207,500View general Journal

Given Organization cost expense 8,500 Franchise 52,000 Advertising expense 28,000 Copyright 32,000…

Journal entry worksheet Record the entry to reclassify various expenditures incorrectly charged to the intangible asset account. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general Journal

Journal entry worksheet Record the entry to reclassify various expenditures incorrectly charged to the intangible asset account. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general Journal

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 36P

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