Professional Documents
Culture Documents
Teresa Watkins
ACC 291
December 18, 2013
Michael Bluvas
E9-1
A. Including the cost principle, the purchase cost for the factory asset will have all bills
necessary to get the asset and make it ready for the objective.
B. 1. Property
2. Plant Machines
3. Delivery Machines
4. Land Renovations
5. Delivery Machines
6. Plant Machines
7. Prepaid Insurance
8. License Expenditure
E9-2
A. 1. 2011: $3,500
2012: $3,500
2. .28 per mile
2011: $4,200
2012: $3,360
3. 2011: $7,500
2012: $5,625
B. 1. Wear and tear expenditure 3,500
3,500
2. Delivery vehicle
30,000
Accumulated wear and tear 3,500
$26,500
E9-12
December 31 Amortization Expenditure: Patent 12,000
12,000
E9-7B
A. January 2 Patents 45,000
45,000
January Research and Development
June Expenditure 230,000
230,000
September 1 Advertising Expenditure 125,000
125,000
October 1 Copyright 200,000
200,000
B. December 31 Amortization Expenditure: Patents 15,000
15,000
31 Amortization Expenditure: Copyright 7,000
7,000
C. Intangible Assets
Patents 120,000
Copyright 229,000
Total Intangible Assets 349,000
D. Company Intangible Assets: 2 patents and 2 copyrights
-Patent 1: Total expense - $145,000 we have $100,000 amortized during a period of 10 years
and the other $45,000 during 9 years.
-Patent 2: Zero
-Copyright 1: Total expense - $60,000 This copyright is being amortized over a time period of
10 years.
-Copyright 2: Total expense - $200,000 This copyright is being amortized over 50 years.