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In 2024, Bratten Fitness Company made the following cash purchases: The exclusive right to...

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Accounting

In 2024, Bratten Fitness Company made the following cash purchases:

  1. The exclusive right to manufacture and sell the X-Core workout equipment from Symmetry Corporation for $200,000. Symmetry created the unique design for the equipment. Bratten also paid an additional $10,000 in legal and filing fees to attorneys to complete the transaction.
  2. An initial fee of $300,000 for a three-year agreement with Silvers Gym to use its name for a new facility in the local area. Silvers Gym has locations throughout the country. Bratten is required to pay an additional fee of $5,000 for each month it operates under the Silvers Gym name, with payments beginning in March 2024. Bratten also purchased $400,000 of exercise equipment to be placed in the new facility.
  3. The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $25,000. The book includes healthy recipes, recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its new facility, as well as make it available online.

Required:

Prepare a summary journal entry to record expenditures related to initial acquisitions.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

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