The intangible assets section of Sappelt Company at December 31, 2015, is presented below.

| April 14, 2018

The intangible assets section of Sappelt Company at December 31, 2015, is presented below.The patent was acquired in January 2015 and has a useful life of 10 years. The franchise was acquired in January 2012 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2016.Jan. 2 Paid $27,000 legal costs to successfully defend the patent against infringement by another company.Jan.–June Developed a new product, incurring $140,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life.Sept. 1 Paid $50,000 to an extremely large defensive lineman to appear in commercials advertising the company’s products. The commercials will air in September and October.Oct. 1 Acquired a franchise for $140,000. The franchise has a useful life of 50 years.InstructionsPrepare journal entries to record the transactions above.Prepare journal entries to record the 2016 amortization expense.Prepare the intangible assets section of the balance sheet at December 31, 2016.DateAccount1-Jan PatentCashDebitAccounts Available to Use27,00027,0001-Jul R&D ExpenseCash140,0001-Sep Advertising ECash50,0001-Oct FranchiseCashb)DateCredit140,00050,000140,000140,000Advertising ExpenseCashFranchisePatentR&D ExpenseAccumulated Amortization (Existing FranchisAccumulated Amortization (New Franchise)Accumulated Amortization (patent)Amortization Expense (Existing Franchise)Amortization Expense (New Franchise)Amortization Expense (Franchise)AccountDebitCredit31-Dec Amortization10,000Patent10,00031-Dec AmortizationFranchise6,9716,971Sappelt Company31-Dec-15Partial Balance Sheet97000Patents27,000Accumulated AmortizationFranchisesAccumulated Amortization-Total Intagible Assets-mortization (Existing Franchise)mortization (New Franchise)mortization (patent)xpense (Existing Franchise)xpense (New Franchise)xpense (Franchise)

Order your essay today and save 30% with the discount code: ESSAYHELP
Order your essay today and save 30% with the discount code: ESSAYHELPOrder Now