wasp company 2011 3 answers below »

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.


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