Journal Entry to Record the Acquisition of The Franchise
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
Journal Entry to Record the Acquisition of The Franchise
- a) a company purchased a patent on January 1, 2010, for $2,500,000. The patents legal life is 20 years but the company estimates that the patent’s useful life will only be 5 years from the date of acquisition. On June 20, 2010, the company paid legal costs of $162,000 in successfully defending the patent in an infringement lawsuit. There was no change in the estimated useful life of the patent at this date.Required: Prepare the journal entry to amortize the patent at year end on December 31, 2012. Show all computations.(b). Milner company purchased a franchise from the Tasty Food Company for $450,000 on January 1, 2012. The franchise is for an indefinite time period and gives Milner Company the exclusive rights to sell Tasty Wings in a particular territory.
Required: (1) Prepare the journal entry to record the acquisition of the franchise and (2) any necessary adjusting entry at year end on December 31, 2012. Show all computations.
(c). Heurter Company incurred research and development costs of $1,200,000 in 2012 in developing a new product. On September 30, 2012, Huerter incurred $50,000 in legal fees in acquiring the patent on this new product. It is estimated that the patent will have an estimated useful life of 5 years.
Required: (1) Prepare the necessary journal entries during 2012, to record these events and (2) any adjustments at year end on December 31, 2012. Show all computations.
E8-5 Hachey Company has accounts receivable of $95,100 at March 31, 2007. An analysis of the accounts shows these amounts.
Balance, March 31
Month of Sale 2007 2006
March $65,000 $75,000
February 12,600 8,000
December and January 10,100 2,400
November and October 7,400 1,100
$95,100 $86,500
Credit terms are 2/10, n/30. At March 31, 2007, there is a $2,200 credit balance in Allowance
for Doubtful Accounts prior to adjustment. The company uses the percentage of
receivables basis for estimating uncollectible accounts. The company’s estimates of bad
debts are as shown on page 402.Reporting and Analyzing Receivables
Estimated Percentage
Age of Accounts Uncollectible
Current 2%
1–30 days past due 7
31–90 days past due 30
Over 90 days 50Instructions
(a) Determine the total estimated uncollectibles.
(b) Prepare the adjusting entry at March 31, 2007, to record bad debts expense.
(c) Discuss the implications of the changes in the aging schedule from 2006 to 2007.Journal Entry to Record the Acquisition of The Franchise
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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