Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Metlock Corporation. 1. 2. Metlock developed a new manufacturing process, incurring research and development costs of $129,000. The company also purchased a patent for $67,000. In early January, Metlock capitalized $196,000 as the cost of the patents. Patent amortization expense of $9,800 was recorded based on a 20-year useful life. On July 1, 2022, Metlock purchased a small company and as a result recorded goodwill of $81,000. Metlock recorded a half- year's amortization in 2022, based on a 20-year life ($2,025 amortization). The goodwill has an indefinite life. Prepare all journal entries necessary to correct any errors made during 2022. Assume the books have not yet been closed for 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Metlock Corporation. 1. 2. Metlock developed a new manufacturing process, incurring research and development costs of $129,000. The company also purchased a patent for $67,000. In early January, Metlock capitalized $196,000 as the cost of the patents. Patent amortization expense of $9,800 was recorded based on a 20-year useful life. On July 1, 2022, Metlock purchased a small company and as a result recorded goodwill of $81,000. Metlock recorded a half- year's amortization in 2022, based on a 20-year life ($2,025 amortization). The goodwill has an indefinite life. Prepare all journal entries necessary to correct any errors made during 2022. Assume the books have not yet been closed for 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 19E

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