Exercise 105 Intangibles L0101 In 2018 Bratten Fitness Compa

Exercise 10-5 Intangibles [L010-1] In 2018, Bratten Fitness Company made the following cash purchases: 1. The exclusive right to manufacture and sell the X-Core workout machine from Symmetry Corporation for $216,000. ed the unique design for the machine. Bratten also paid an additional $10,500 in legal and fillng fees to attorneys to complete the transaction. 2. An initial fee of $325,000 for a three-year agreement with Slver\'s Gym to use its name for a new fecility in the local area. Sivers Gym has locations throughout the country. Bratten is required to pay an additional fee of $6,600 for each month Iit operates under the Silver\'s Gym name, with payments beginning in March 2018. Bratten also purchased $416,000 of exercise equipment to be placed In the new facility. 3. The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $35,000. The book includes healthy recipes recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its new facility, as well as make it available online. Required: Prepare a summary journal entry to record expenditures related to initial acquisitions. (If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field) View n list Journal entry worksheet Record the expenditures related to initial acquisitions.

Solution

Patent 226500 =216000+10500 Franchise 325000 Equipment 416000 Copyright 35000       Cash 1002500