Problem 12-5 (Part Level Submission) Splish Brothers Golf Inc. was formed on July 1, 2016, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $790,000 cash for Old Master. At the time, Old Masters balance sheet reported assets of $630,000 and liabilities of $180,000 (thus owners equity was $450,000). The fair value of Old Masters assets is estimated to be $800,000. Included in the assets is the Old Master trade name with a fair value of $9,000 and a copyright on some instructional books with a fair value of $43,200. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years.

(a) Your answer is correct. Prepare the intangible assets section of Splish Brothers Golf Inc. at December 31, 2016. SPLISH BROTHERS GOLF INC. Intangibles Section of Balance Sheet For the Year Ended December 31, 2016For the Month Ended December 31, 2016December 31, 2016 $ Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity $ How much amortization expense is included in Splish Brothers income for the year ended December 31, 2016? Amortization expense $ SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used

(b) Your answer is partially correct. Try again. Prepare the journal entry to record amortization expense for 2017. Prepare the intangible assets section of Splish Brothers Golf Inc. at December 31, 2017. (No impairments are required to be recorded in 2017.) (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 0 for the amounts.) Account Titles and Explanation Debit Credit SPLISH BROTHERS GOLF INC. Intangibles Section of Balance Sheet For the Month Ended December 31, 2017December 31, 2017For the Year Ended December 31, 2017 $ Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity $