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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Solve for C please

Transcribed Image Text:(d)
Your answer is partially correct.
In 2025, Blue determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by
December 31, 2026. Prepare all journal entries required in 2025 and 2026. (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. List
debit entry before credit entry.)
Date
Account Titles and Explanation
2025
Amortization Expense
Patents
2026
V
Amortization Expense
Patents
Debit
Credit

Transcribed Image Text:During 2021, Blue Corporation spent $145,440 in research and development costs. As a result, a new product called the New Age
Piano was patented. The patent was obtained on October 1, 2021, and had a legal life of 20 years and a useful life of 10 years. Legal
costs of $19,440 related to the patent were incurred as of October 1, 2021.
(a)
Your answer is correct.
Prepare all journal entries required in 2021 and 2022 as a result of the transactions above. (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. List all debit entries before credit entries. Record entries in the order displayed in the problem statement.)
Date
Account Titles and Explanation
121
Research and Development Expense
021
021
V
122 V
Cash
(To record research and development expenses)
Patents
cash
(To record legal expenses)
Amortization Expense
Patents
(To record amortization expense)
Amortization Expense
Patents
Debit
145440
19440
486
1944
Credit
145440
19440
486
1944
Expert Solution
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