Prepare adjusting entries for amortization

Accounting
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Prepare adjusting entries for amortization

Jan 1- Purchased a small company and recorded goodwill of $150,000.  It's useful life is indefinite.

May 1- Purchased for 75,000 a patent with an estimated useful life of 5 years and a legal life of 20 years.

Jan 13th, 2015

Jan 1      No entry because 

Goodwill and trademarks were determined to have indefinite useful lives and are not amortized into results of operations

May 1      (75000/5)Amortization exps.(Dr.) $15000

                                                                  Accumulated Amortization-Patent(Cr.) $15000

Jan 13th, 2015

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