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3 years ago

Larkspur Industries acquired two copyrights during 2020.

Business

1 answer:

denpristay [2]3 years ago

3 0

Answer:

1st copyright will not be reported on balance sheet.

2nd copyright will be reported on balance sheet.

Dr Copyright (Intangible Asset) $34,000

Cr Cash $34,000

Explanation:

<u>1st Copyright</u>

If an intangible asset is internally generated, none of its costs are capitalized.

<u>2nd Copyright</u>

Acquired copyright is reported on balance sheet as an intangible asset. Company may include only outright purchase costs in the acquisition cost of an intangible asset; the acquisition cost does not include cost of internal development.

Only recognized intangible assets with finite useful lives are amortized. Recognized intangible assets having indefinite useful lives are not amortized.

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Answer:

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Answer:

No. of shares outstanding = A

Par Value (at $5) = B

Additional Paid in capital in excess of Par = C

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A B(A*$5) C D

Jan 1 balance 90,500 $452,500 $0

Add: Issued Apr 1 21,000 $105,000 $294000

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Journal Entries based on above

Date Accounts Titles Debit Credit

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3 years ago

King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Paya

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Answer:

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On July 16, 2017, Logan acquires land and a building for $500,000 to use in his sole proprietorship. Of the purchase price, $400

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