$15.00 Record the transaction in general joural form

• From Business: Accounting , Business: Finance
• Due on Dec. 07, 2008
• Asked on Dec 03, 2008 at 10:13:08PM

Q:

Gooden Enterprises developed a new machine for manufacturing baseballs. Because the machine is considered very valuable, the company had it patented. The following expenditures were incurred in developing & patenting the machine.
(a) Purchases of special equip. to be used solely for development of the new machine $182,000
(b) Research salaries & fringe benefits for the engineers & scientists $17,100
(c) Cost of testing prototype $23,600
(d) Legal costs for filing patent $12,700
(e) Fees paid to goverment patent office $2,500
(f) Drawings required by patent office to be filed with patent application $4,700

Gooden elected to amortize the patent over its legal life. At the begining of the 2nd year, Gooden paid $24,000 to successfully defend the patent in an infringement suit. At the beginning of the 4th year Gooden determined that the remaining estimated useful life of the patent was 5 years.

Record the above transactions in general journal form for Gooden Enterprises for the first 5 years of the life of the patent. Include any amortization or depreciation for each period.

 

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