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Vsevolod [243]
3 years ago
10

Murphy Printers ​(MP) manufactures printers. Assume that MP recently paid $ 500 comma 000 for a patent on a new laser printer. A

lthough it gives legal protection for 20​ years, the patent is expected to provide a competitive advantage for only eight years.
Requirements
1. Assuming the​ straight-line method of​ amortization, make journal entries to record​ (a) the purchase of the patent and​ (b) amortization for the first full year.
2. After using the patent for four ​years, MP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new​ information, MP​ decides, starting with year 5​, to amortize the remaining cost of the patent over two remaining​ years, giving the patent a total useful life of six years. Record amortization for year 5.

Business
1 answer:
SVEN [57.7K]3 years ago
6 0

Answer: The answer is given below

Explanation:

1. The journal entries to record​ the purchase of the patent and​ the amortization for the first full year has been solved and attached.

2. The amortization expense of he 4 years will be:

= $62500 × 4

= $250,000

Therefore, the book value of the patent will be:

= Cost of the patent - amortization expense

= 500,000 - 250,000

= $250,000

Amortization for year 5 = Book value/Estimated useful life remaining

= 250,000/2

= $125,000

The journal for the amortization expense for year 5 has been attached

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Statement: "Whenever a company’s activities reduce the quality of life for nearby homeowners, the company should be legally requ
olganol [36]

Answer:

2) assumption not made

Explanation:

The original statement does not include any assumption about what the companies are doing about this issue, it just proposes an idea of fair compensation.

maybe whoever wrote this statement believes that very few companies or none at all actually compensate homeowners for a reduction in the market value of their properties, but it doesn't state it. It is also possible that the statement assumes that companies are paying some compensations or were paying some compensations but are not willing to continue to do it since no legislation forces them to do so. The author's position is vague and not clear with respect to what the companies are currently doing.

4 0
2 years ago
The following totals for the month of April were taken from the payroll register of Magnum Company. Salaries $12,000 Social Secu
Novosadov [1.4K]

Answer:

d. credit to Salaries Payable for $8,600

Explanation:

<em>The journal entry would be as follows.</em>

Magnum Company

Payroll Journal

Particulars                            Debit                    Credit

Salaries                       $12,000  Debit

Federal Income taxes withheld                       2,500 Credit

Social Security & Medicare taxes withheld      900 Credit

Salaries Payable                                               $8,600 Credit

Unemployment taxes are paid by the employer . They are not deducted from the employees' wages . They include both the federal and state taxes.Social Security & Medicare taxes withheld $ 900 include the  Social Security & Medicare taxes  $ 900.

6 0
3 years ago
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
Eduardwww [97]

Answer:

Split-off point:

The split-off point is the point at which products from the joint process appear and are identified.  The costs which are incurred up to the split-off point are called joint costs and the costs that are incurred after the split-off point are called as

Separable costs. Some joint products which emerge from joint process can be sold at the split-off point or some products can be put to further processing.

Compute the profit or loss from the three products as shown below'

Description                                                              A               B               C

Selling price after further processing                    20              13              32

Selling price at the split off point                            16               8        25

Incremental revenue per pound or gallon             4               5         7

Total quarterly output in pounds or gallons     $15,000    $20,000    $4,000

Total incremental revenue                              $60,000   $100,000  $28,000

Total incremental processing costs              $63,000   $80,000  $36,000

Total incremental profit or (loss)                       ($3,000) $20,000  ($8,000)

Therefore the products A and C are need to be sold at the split off point and he product B should be processed further to earn good profits.  

3 0
3 years ago
Karen is designing a process for issuing checks and decides that one group of users will have the authority to create new payees
Nataly [62]

Answer:

D. Separation of Duties

Explanation:

Separation of duties also know as segregation of duties refuses that one person he responsible of acquisition of assets, their custody and related record keeping. The process in which Karen is using to prevent fund by separating individuals who as the authority to issue checks is known as separation of duties. It is a form of internal control aimed at reducing risk of errors and frauds.

4 0
2 years ago
Skysong, Inc. reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 250 $5 $ 1,250 12 Purchas
ziro4ka [17]

Answer:

Weighted average unit cost =  $8.78

Explanation:

<em>The weighted average method of inventory determines the average cost per unit of inventory each time a new batch is received. or every new batch received the average cost per unit is re-computed by dividing the total value of stock by the outstanding number of units.</em>

The explanation is completed using calculation below:

Total value of stock = (250× $5)   +  (500×$9) + (375 × 11)  = $9,875

Total units of stock = 250 + 500 + 375 = 1,125  units

Weighted average unit cost = Total value of stock / total units of stock

                                        =  $9875 / 1125 units = $8.78

Weighted average unit cost =  $8.78

5 0
3 years ago
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