AC 302 CHAPTER 12 QUESTION 6

AC 302 CHAPTER 12 QUESTION 6
Name                               Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E12-6 (Recording and Amortization of Intangibles) Powerglide Company, organized in 2011, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2012.						
						
						
	01/02/2012	Purchased patent,		8	year life	$380,000 
	04/01/2012	Purchased goodwill, indefinite life				$360,000 
	07/01/2012	Purchased franchise with		10	year life, 	$450,000 
		expiration date 7/1/20				
	08/01/2012	Payment of copyright,		5	year life	$156,000 
	09/01/2012	Research and development costs				$215,000 
						$1,561,000 
Instructions:						
Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2012, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.)						
						
						
						
	Account Title			Amount		
	Account Title			Amount		
	Account Title			Amount		
	Account Title			Amount		
	Account Title			Amount		
	Account Title				Formula	
						
	Account Title			Formula		
	Account Title				Formula	
	Account Title				Formula	
	Account Title				Formula	
						
Balance of Intangible Assets as of December 31, 2010						
						
	Account Title				Formula	
	Account Title				Formula	
	Account Title				Formula	
	Account Title				Formula