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.
Instructions
Prepare all journal entries necessary to correct any errors made
during 2011. Assume the books
have not yet been closed for 2011.
