On January 4, 2021, the Franc Company purchased for P27,000 a patent that had been filed eight years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2022, the company paid its lawyer P10,000 for successfully defending the patent in a lawsuit. Required Prepare all the journal entries associated with the patent in 2021 and 2022. Note: Show the solution or formula of every problem.
On January 4, 2021, the Franc Company purchased for P27,000 a patent that had been filed eight years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2022, the company paid its lawyer P10,000 for successfully defending the patent in a lawsuit. Required Prepare all the journal entries associated with the patent in 2021 and 2022. Note: Show the solution or formula of every problem.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 4, 2021, the Franc Company purchased for P27,000 a patent that had been
filed eight years earlier. The patent covers a manufacturing process that the company
plans to use for 15 years. On January 3, 2022, the company paid its lawyer P10,000 for
successfully defending the patent in a lawsuit.
Required
Prepare all the journal entries associated with the patent in 2021 and 2022.
Note: Show the solution or formula of every problem.
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