Clanton Company Engaged in the Following Transactions During 2011

question 65

Essay

Clanton Company engaged in the following transactions during 2011.Record each in the general journal below:
1)On January 3,2011,Clanton purchased a copyright from Dalton Company with a cost of $250,000 with a remaining useful life of 25 years.
2)On January 10,2011,Clanton purchased a trademark from Felton Company with a cost of $700,000.
3)On July 1,2011,Clanton purchased a patent from Garrison Company at a cost of $80,000.The remaining legal life of the patent is 15 years and the expected useful life is 11 years.
4)On July 2,2011,Clanton paid $30,000 in legal fees to defend the patent protection purchased on July 1,2011.
5)Recorded the appropriate amortization for the intangible assets for 2011.
6)Clanton Company includes an asset in its ledger recorded when Clanton purchased a computer service business at a price in excess of the fair value of the assets of the company in the amount of $400,000.At December 31,2011,$100,000 of this asset has become impaired.

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Definitions:

Record

A record is a documented account of an event, transaction, or other significant information, stored in written, audio, or digital form.

Smaller Number

A value or quantity that is less than another in a given set or range of numbers.

Fair 6-Sided Dice

Refers to an equally balanced die where each of the six faces, numbered from 1 to 6, has an equal probability of landing face up when thrown.

Record

A document or entity that preserves information or data for future reference.