Prepare adjusting entries for amortization

Accounting
Tutor: None Selected Time limit: 1 Day

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

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Jan 13th, 2015
...
Jan 13th, 2015
Mar 26th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer