Internal control over a company’s assets should include which of the following?

Amortization Entries Kleen Company acquired patent rights on January 10 of Year 1 for $2,800,000. The patent has a useful life e

iogann1982 [59]

Answer:

a. The patent amortization expense for Year 4 ended December 31 is $357,600.

b. Debit Amortization expense for $357,600; and Credit Accumulated amortization - Patent for $357,600.

Explanation:

Patent acquisition cost = $2,800,000

Number of years to use for amortization patent acquisition cost = Useful life equal = Legal life = 8

Lawsuit at a cost = $38,000

Number of years to amortize the lawsuit cost = Number of years to use for amortization – Numbers of years from January Year 1 to January Year 4 = 8 – 3 = 5

Therefore, we can now have:

a. Determine the patent amortization expense for Year 4 ended December 31.

Patent amortization expense for Year 4 = (Patent acquisition cost / Number of years to use for amortization patent acquisition cost) + (Lawsuit cost / Number of years to amortize the lawsuit cost) = ($2,800,000 / 8) + ($38,000 / 5) = $357,600

Therefore, the patent amortization expense for Year 4 ended December 31 is $357,600.

b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization.

The journal entry will look as follows:

Details Debit ($) Credit ($)

Amortization expense 357,600

Accumulated amortization - Patent 357,600

(To record Patent amortization.)

3 0

3 years ago

On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to rece

ASHA 777 [7]

Answer:

a. $5,175

Explanation:

Expected transaction price with variable consideration estimated as the expected value = $4,500 + (30%*$4,500*30%) + (10%*$4,500*60%) + (0%*$4,500*10%)

= $4,500 + $405 + $270 + $0

= $5,175

So, the expected transaction price with variable consideration estimated as the expected value is $5,175

8 0

3 years ago

HELP FAST! What is the correct answer?!?!

Nataly [62]

The retailer/store pays the interchange rate.

8 0

2 years ago

Read 2 more answers

Factors involved in importing

LiRa [457]

A country's balance of trade is defined by its net exports (exports minus imports) and is thus influenced by all the factors that affect international trade. These include factor endowments and productivity, trade policy, exchange rates, foreign currency reserves, inflation, and demand.

3 0

3 years ago

A. Two years ago your firm took out a 30- year amortizing loan to purchase a small office building. The loan has a 4.80% APR wit

vredina [299]

Answer:

i. How much do you owe on the loan today?

remaining principal balance = $484,331.31

ii. How much interest did the firm pay on the loan in the past year?

during year 2, $23,458 was paid in interests ($28,833.33 was paid in interest during year 1).

iii. Suppose starting next year (fourth year) the loan rate jumps to 7.2% APR. What is the remaining balance? What will be the monthly payment?

the remaining balance at the beginning of year 4 is $475,916
the new monthly payment will be $3,375.72

Explanation:

I prepared two amortization schedules using an excel spreadsheet. The principal on the loan was $500,000. The first one has a fixed 4.8% APR for the whole 30 years. In the second one, the APR changes to 7.2% at the beginning of year 4.

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7 0

4 years ago