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Intangible Answer Problem 1

The document discusses 10 problems related to accounting for intangible assets. It provides costs and other financial details about copyrights, trademarks, patents, goodwill, amortization and impairment of intangible assets. Journal entries are provided for various transactions throughout the year.

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85 views2 pages

Intangible Answer Problem 1

The document discusses 10 problems related to accounting for intangible assets. It provides costs and other financial details about copyrights, trademarks, patents, goodwill, amortization and impairment of intangible assets. Journal entries are provided for various transactions throughout the year.

Uploaded by

krizzmaaaay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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INTANGIBLE ANSWER

PROBLEM 1

Cost 1/1/2013 P 6,000,000

Accumulated depreciation – 12/31/2017 (6,000,000 / 15 x 5) 2,000,000

Book value – 1/1/2018 4,000,000

Amortization for 2018 (4,000,000 / 5) P 800,000

PROBLEM 2

Design costs P 1,500,000


Legal fees of registering trademark 150,000
Registration fee with Patent Office 50,000
Total cost of trademark P 1,700,000

PROBLEM 3

Amortization for 2018 ( P2,250,000 / 10 years ) P 225,000

PROBLEM 4

Copyright P 500,000
Excess of Cost 4,000,000
Trademark 900,000
Total Intangible Assets P 5,400,000

PROBLEM 5

Accounts Receivable P 1,000,000


Inventory 250,000
Equipment 250,000
Short-Term loan payable (1,000,000)
Net Assets at Fair Value P 500,000

Acquisition Cost P 2,500,000


Net Asset at Fair Value ( 500,000 )
Goodwill P2,000,000

PROBLEM 6

-Cost of Trademark P 3,500,000


-Employee benefits relating to the testing of the proper
Functioning of the new process 200,000
TOTAL P 3,700,000
PROBLEM 7

Cost 01/01/16 P 5,400,000


Amortization for 2016 and 2017 ( 450,000/15 x 3 ) (1,800,000)
Carrying Amount – 01/01/18 3,600,000

Amortization for 2018 ( 3,600,000 / 20 ) P 180,000

PROBLEM 8

Acquisition Cost (150,000x P50) P 7,500,000


Fair Value of net assets acquired ( P 6000,000 + 800,000 ) 6,800,000
Goodwill P 700,000

PROBLEM 9

Intangible Asset 01/01/18 P 3,000,000


Amortization for 2018 (3,000,000/10) (300,000)
Carrying Amount- 12/31/18 P 2,700,000

Value in use (300,000 x 7.11) P 2,133,000


Carrying Amount (P 2,700,000)
Impairment Loss P 567,000

PROBLEM 10
Journal entries for 2018

1/2 Organization expenses 233,000


Cash 233,000

1/15 Advertising expense 15,000


Cash 15,000
4/1 Patents 492,500
Cash 492,500

5/1 Licenses (P300,000 x 2/3) 200,000


Trademark 100,000
Common stock (6,000 x P50) 300,000

7/1 Building 1,310,000


Cash 1,310,000

12/31 Research and Development expense 1,750,000


Cash 1,750,000

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