Tweedy Pharmaceuticals engaged in the following activities during 20X6. Review each and prepare any entry that is needed to record the item, along with adjusting entries at December 31 to record amortization or impairment (if necessary). Jan. 1 July 1 Oct. 1 Oct. 1 Dec. 31 Spent $80,000 in legal fees to register a patent for an internally developed concept. The patent should benefit the company for at least its full legal life, and perhaps even longer. Expended $125,000 to research and develop a process that is protected by confidentially agreements with employees (i.e., "trade secret") who worked on the project. Purchased the "Memory Minder" brand name from a competitor for $500,000 cash. This trademarked brand name will be used indefinitely to promote a memory aiding drug. Expended $90,000 to purchase a copyright with a 5-year remaining life. This copyright was purchased because it competed with a Tweedy product having a 3-year remaining life. Concluded that $1,000,0000 of goodwill from a business combination arising in 20X5 was no longer of any value to Tweedy.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

5c

GENERAL JOURNAL
Date
Accounts
Debit
Credit
Transcribed Image Text:GENERAL JOURNAL Date Accounts Debit Credit
Tweedy Pharmaceuticals engaged in the following activities during 20X6. Review each and prepare any entry that is
needed to record the item, along with adjusting entries at December 31 to record amortization or impairment (if
necessary).
Jan. 1
July 1
Oct. 1
Oct. 1
Dec. 31
Spent $80,000 in legal fees to register a patent for an internally developed concept. The patent should
benefit the company for at least its full legal life, and perhaps even longer.
Expended $125,000 to research and develop a process that is protected by confidentially agreements
with employees (i.e., "trade secret") who worked on the project.
Purchased the "MemoryMinder" brand name from a competitor for $500,000 cash. This trademarked
brand name will be used indefinitely to promote a memory aiding drug.
Expended $90,000 to purchase a copyright with a 5-year remaining life. This copyright was
purchased because it competed with a Tweedy product having a 3-year remaining life.
Concluded that $1,000,0000 of goodwill from a business combination arising in 20X5 was no longer
of any value to Tweedy.
Transcribed Image Text:Tweedy Pharmaceuticals engaged in the following activities during 20X6. Review each and prepare any entry that is needed to record the item, along with adjusting entries at December 31 to record amortization or impairment (if necessary). Jan. 1 July 1 Oct. 1 Oct. 1 Dec. 31 Spent $80,000 in legal fees to register a patent for an internally developed concept. The patent should benefit the company for at least its full legal life, and perhaps even longer. Expended $125,000 to research and develop a process that is protected by confidentially agreements with employees (i.e., "trade secret") who worked on the project. Purchased the "MemoryMinder" brand name from a competitor for $500,000 cash. This trademarked brand name will be used indefinitely to promote a memory aiding drug. Expended $90,000 to purchase a copyright with a 5-year remaining life. This copyright was purchased because it competed with a Tweedy product having a 3-year remaining life. Concluded that $1,000,0000 of goodwill from a business combination arising in 20X5 was no longer of any value to Tweedy.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Intangible assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education