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P9-8B_Rectification of errors




Question;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.


Paper#37528 | Written in 18-Jul-2015

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