The Ripkin Corporation was organized and began to operate on January 1 of the current year to manufacture and sell children's clothes. During the year, the following expenditures were recorded in the company's goodwill account:
Required:
a. Prepare an entry as of December 31, to reclassify the appropriate items from the goodwill account to appropriate accounts.
b. Prepare the adjusting entry or entries required to amortize the intangible assets using the straight-line method. Calculate amortization to the nearest month.
The above transactions were recorded by an inexperienced data entry clerk.

Question

The Ripkin Corporation was organized and began to operate on January 1 of the current year to manufacture and sell children's clothes. During the year, the following expenditures were recorded in the company's goodwill account: 
 Required: 
a. Prepare an entry as of December 31, to reclassify the appropriate items from the goodwill account to appropriate accounts.
b. Prepare the adjusting entry or entries required to amortize the intangible assets using the straight-line method. Calculate amortization to the nearest month.
The above transactions were recorded by an inexperienced data entry clerk.

Quizplus · Accepted Answer

The Answer of The Ripkin Corporation was organized and began to operate on January 1 of the current year to manufacture and sell children's clothes. During the year, the following expenditures were recorded in the company's goodwill account: 
 Required: 
a. Prepare an entry as of December 31, to reclassify the appropriate items from the goodwill account to appropriate accounts.
b. Prepare the adjusting entry or entries required to amortize the intangible assets using the straight-line method. Calculate amortization to the nearest month.
The above transactions were recorded by an inexperienced data entry clerk.

The Ripkin Corporation Was Organized and Began to Operate on January