E12 6 Recording And Amortization Of Intangibles Rolanda Marshall Com Rolanda Marshall Company, organized in 2013, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2014. 1/2/14 4/1/14 7/1/14 8/1/14 9/1/14 Instructions $350,000 $1,531,000 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2014, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.)
Paper For Above instruction Introduction This paper addresses the accounting procedures for recording and amortizing intangible assets for Rolanda Marshall Company during the fiscal year 2014. The company initially pooled all intangible assets into a single account; however, accounting standards require the segregation of different intangible asset types for proper amortization and reporting. This report outlines the necessary journal entries to reclassify purchased intangibles, record their amortization using the straight-line method, and reflect accurate balances as of December 31, 2014. Initial Recognition and Classification of Intangible Assets Throughout 2014, Rolanda Marshall Company recorded several acquisitions of intangible assets. Notably, partial data indicates significant purchases on specific dates: $350,000 on February 1; $1,531,000 on April 1; additional entries on July 1, August 1, and September 1 suggest further intangible asset acquisitions or related transactions. Initially, all expenditures were debited to a single 'Intangible Assets' account, which is inconsistent with GAAP standards requiring distinguishable classes of intangible assets such as patents, trademarks, copyrights, or goodwill. Reclassification of Intangibles To comply with proper accounting practices, the first step involves transferring the accumulated balance of the single 'Intangible Assets' account into specific accounts that reflect the nature of each intangible. Given the data, we assume two primary acquisitions: the $350,000 on February 1 and the $1,531,000 on April 1. For this case, we will prepare entries to transfer these balances into separate intangible asset accounts, such as 'Patents' or 'Goodwill,' depending on their substance, but here, due to limited detail, generalized