Accounting for Intangible Assets Chart Of Accounts General Journal Final Questio

Question

Accounting for Intangible Assets Chart Of Accounts General Journal Final Question 03 Blackford and Medford Publishing Company own the copyrights on many top authors. On January 5, 2020, Blackford and Medford acquired the copyright on the literary works of Susan Monroe, an underground novelist in the 1960s, for $825,000 cash. Due to a recent resurgence of interest in the 1960s, the copyright has an estimated economic life of 5 years. The residual value is estimated to be zero. Required: 1. Prepare a journal entry to record the acquisition of the copyright. 2. Compute and record the 2020 amortization expense for the copyright Check My Work All work saved Assignment Score: 52.73%

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 5-Jan-20 Copyright                                                     Dr.          825,000    To Cash          825,000 (Record the copright purchased) Answer 2. Amortization Expense - 2020 = $825,000 / 5 Years Amortization Expense - 2020 = $165,000 Journal Entry Date Particulars Dr. Amt. Cr. Amt. 31-Dec-20 Amortization Expnese                             Dr.          165,000    To Copyright          165,000 (Record the amortization expenses)

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