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algol [13]
3 years ago
5

Cost and Amortization of Intangible Assets On January 2, 2019, Frazier Company purchased a restaurant franchise for $85,000. The

terms of the franchise agreement allowed Frazier to have exclusive rights to operate a restaurant under the "Simply Fried" brand name for the next 10 years. Required: Prepare any journal entries related to the franchise that Frazier should make during 2019. Jan. 2 (Record purchase of franchise) Dec. 31 (Record amortization of franchise)
Business
1 answer:
umka21 [38]3 years ago
5 0

Answer: The following journal entries would apply:

<u>Purchase of franchise:</u>

Debit: Restaurant franchise (intangible asset) $85,000

Credit: Cash $85,000

<u>Amortization of franchise:</u>

Debit: Amortization charge $708

Credit: Accumulated amortization $708

Explanation: When the franchise was purchased, there was a cash outflow. So the above first entries would apply in order to recognize the intangible asset in Frazier Company's books. However, the intangible was meant to be amortized over 10 years, meaning $85,000/10 years = $8,500 annual amortization charge. We still have to divide this by 12 in order to arrive at the monthly amortization charge. So $8,500 divided by 12 months = $708 monthly. The above entries apply on amortization.

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TRUE, If the fed undertakes expansionary monetary policy, it can return the economy to its original unemployment rate but the inflation rate will be higher.

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2 years ago
You expect KT industries​ (KTI) will have earnings per share of $ 6 $6 this year and expect that they will pay out $ 1.25 $1.25
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5 0
3 years ago
Morgan Pharmaceutical spends $50,000 this year in research and development for a new drug to cure liver damage. By the end of th
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The impact of spending $50,000 on the research and development for a new drug to to cure liver damage will increase the expenses of the Morgan Pharmaceutical in the years financial statements.

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Morgan pharmaceutical is pending $50,000 on he research and development of new drug which can cure the liver damage, from this spending company is expecting that after they have successfully created new drug it will lead to the increase in sales , which will ultimately lead to increase in profits , which then would totally recover the initial cost incurred on research and development but until then these expenses would be shown in the current years financial statement as expenses, and thus would increase the total expenses of the company.

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Walden’s family is shopping for a reclining chair. The chair the family decided on has a retail price of $800 plus 5% sales tax
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Just by looking at the answer you can take out D because C already offers no tax and 5% off, do C is better than D, so we only have to do t math for A, B, and CA is 800 plus tax, with $75 back800×1.05 (because it's 5% tax) -75 =$765B is 800×.90 (because 10% off means he's paying 90%)×.05=$756C is 800×.95 (because 5% off means he's paying 95%) =760A=765B=756C=760So B is the best deal


:)

7 0
3 years ago
Read 2 more answers
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