Solved by verified expert :P9-8B Due to rapid turnover in the accounting department, a number of
transactions involving

intangible assets were improperly recorded by Wasp Company in 2011.

1. Wasp developed a new manufacturing process, incurring research and
development costs of

$110,000.The company also purchased a patent for $50,000. In early
January, Wasp capitalized

$160,000 as the cost of the patents. Patent amortization expense of
$8,000 was recorded based

on a 20-year useful life.

2. On July 1, 2011, Wasp purchased a small company and as a result
acquired goodwill of

$200,000.Wasp recorded a half-year’s amortization in 2011, based on a
50-year life ($2,000

amortization).The goodwill has an indefinite life.


Prepare all journal entries necessary to correct any errors made
during 2011. Assume the books

have not yet been closed for 2011.

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