Melissa Company, which was organized in January 2016, recorded the following transactions during 2014 in a single account called Intangible Assets: Note: The president of Melissa has stated that she believes the employee training costs have resulted in goodwill.
Required:
a. Prepare an entry as of December 31, 2016, to reclassify the items from the intangible assets account to the appropriate accounts.
a. Patents are estimated to have a ten-year economic life. Any other intangible assets recognized should be amortized over their legal life. Record amortization to the nearest month, using the straight-line method.
b. Prepare the adjusting entry or entries required to amortize any intangible assets recorded or remaining from requirement

Question

Melissa Company, which was organized in January 2016, recorded the following transactions during 2014 in a single account called Intangible Assets:  Note: The president of Melissa has stated that she believes the employee training costs have resulted in goodwill.
Required: 
a. Prepare an entry as of December 31, 2016, to reclassify the items from the intangible assets account to the appropriate accounts.
a. Patents are estimated to have a ten-year economic life. Any other intangible assets recognized should be amortized over their legal life. Record amortization to the nearest month, using the straight-line method.
b. Prepare the adjusting entry or entries required to amortize any intangible assets recorded or remaining from requirement

Quizplus · Accepted Answer

The Answer of Melissa Company, which was organized in January 2016, recorded the following transactions during 2014 in a single account called Intangible Assets:  Note: The president of Melissa has stated that she believes the employee training costs have resulted in goodwill.
Required: 
a. Prepare an entry as of December 31, 2016, to reclassify the items from the intangible assets account to the appropriate accounts.
a. Patents are estimated to have a ten-year economic life. Any other intangible assets recognized should be amortized over their legal life. Record amortization to the nearest month, using the straight-line method.
b. Prepare the adjusting entry or entries required to amortize any intangible assets recorded or remaining from requirement

Melissa Company, Which Was Organized in January 2016, Recorded the Following