Sheridan Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $323,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. (b) The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Sheridan Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the
company expends $323,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be
derived from it.
(b)
The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The
administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,000. The patent has an
expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020.
(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.)
Transcribed Image Text:Sheridan Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $323,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. (b) The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. (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.)
The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The
administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,000. The patent has an
expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020.
(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.)
Account Titles and Explanation
(To record research and development costs)
(To record legal and administrative costs)
(To record one year's amortization expense)
Debit
Credit
10.00
Transcribed Image Text:The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. (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.) Account Titles and Explanation (To record research and development costs) (To record legal and administrative costs) (To record one year's amortization expense) Debit Credit 10.00
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