50.1K

Verified Solution

Link Copied!

Problem 11-8 (Algo) Amortization; partial period [LO11-4] The following information concerns the intangible assets of Baez Corporation: a. On June 30,2024, Baez completed the acquistion of the Johnstone Corporation for $1,760,000in cash. The fall value of the net Identifiable assets of Johnstone was $1,500,000 b. Included in the assets purchased from Johnstone was a patent that was valued at $64,400. The remalning legal life of the patent was 12 years, but Baez belleves that the patent willionly be useful for another seven years. c. Baez acquired a franchlse on October 1, 2024, by payliag an initial franchilse fee of $165,600. The contractualilife of the franchise is 9 years. Required: 1. Prepare year-end adjusting jojrpal entrles to record stralght-ine amortization expense of the -intangibles at December 31,2024. 2. Prepare the Intanglble asset section of the December 31,2024 , 7 alance sheet. Complete this question by entering youn answers in the tabe: Prepare year-end adjusting journal entries to record stiaight-ine amortization expense of the intangibles at December-31, 2024. Note: Do not round intermediate calculations, If no entry is required for a transaction/levent, select "No journal entry required" in the first account field. Problem 11-8 (Algo) Amortization; partial period [LO11-4] The following information concerns the Intanglble assets of Baez Corporation: a. On June 30,2024 , Baez completed the acquisition of the Johnstone Corporation for $1,760.000 In cash. The falr value of the net Identifiable assets of Johnstone was $1,500,000. b. Included in the assets purchased from Johnstone was a patent that was valued at $64,400. The remaining legal life of the patent was 12 years, but Baez belleves that the patent will only be useful for another seven years. c. Baez acquired a franchise on October 1, 2024, by paying an Initial franchise fee of $165,600. The contractual life of the franchise is 9 years. Requlred: 1. Prepare year-end adjusting Journal entrles to record straight-ilne amortization expense of the Intangibles at December 31 , 2024. 2. Prepare the Intanglble asset section of the December 31,2024 , balance sheet. Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare the intangible asset section of the December 31, 2024, balance sheet. Note: Do not round intermediate calculations

Answer & Explanation Solved by verified expert

See Answer