question archive The general journal of Kevin Berry Industries included the following entries relating to various expenditures during 20X5

The general journal of Kevin Berry Industries included the following entries relating to various expenditures during 20X5

Subject:AccountingPrice: Bought3

The general journal of Kevin Berry Industries included the
following entries relating to various expenditures during 20X5. Review this information and prepare
corresponding entries to record any necessary straight-line amortization or
other impairment for the year ending December 31.

GENERAL JOURNAL

Date
Accounts

Debit
Credit

01-Jan
Patent

30,000

Cash

30,000

Acquired
a patent from an inventor. The patent
has a 15-year remaining legal life, but it is expected that Berry will
utilize the patent for only 5 years.

15-May
Research
Expense

12,000

Cash

12,000

Incurred
costs in research and development activity.
It is possible these costs will result in new product with a 48-month
life.

01-Sep
Inventory

25,000

Building

75,000

Goodwill

50,000

Cash

150,000

To
record purchase of business, expected to be operated successfully for an
indefinite number of future years.

20-Dec
Copyright

10,000

Cash

10,000

Purchased
copyright to a video production, but concluded that it was worthless by
year’s end.

pur-new-sol

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