On July 1, Sterns Co. acquired patent rights for $36,000. The patent has a usefu
ID: 2568792 • Letter: O
Question
On July 1, Sterns Co. acquired patent rights for $36,000. The patent has a useful life of 6 years and a legal life of 15 years.
Journalize the adjusting entry on December 31 to recognize the amortization. Refer to the Chart of Accounts for exact wording of account titles.There should be 2 rows for this Journal.
Chart of Accounts...
Required:Journalize the adjusting entry on December 31 to recognize the amortization. Refer to the Chart of Accounts for exact wording of account titles.There should be 2 rows for this Journal.
Chart of Accounts...
ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 121 Equipment 122 Accumulated Depreciation 132 Goodwill 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Supplies Expense 523 Delivery Expense 524 Rent Expense 525 Insurance Expense 531 Repairs and Maintenance Expense 541 Depreciation Expense 543 Depletion Expense 544 Amortization Expense 591 Miscellaneous Expense 710 Interest Expense 720 Loss from Impaired GoodwillExplanation / Answer
Journalize the adjusting entry on December 31 to recognize the amortization.
date accounts & explanation debit credit Amortization Expense 3000 Patents a/c (36000/6)/2 3000 (To record amortization of patent)Related Questions
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