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Amortization entries Instructions Chart of Accounts First Question Journal Instructions Kleen Company acquired patent rights on January 10 of Year 1 for $2,800,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $38,000. Required: a. Determine the patent amortization expense for Year 4 ended December 31. b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Chart of Accounts CHART OF ACCOUNTS Kleen Company General Ledger

Amortization entries Instructions Chart of Accounts First Question Journal Instructions Kleen Company acquired patent rights on January 10 of Year 1 for $2,800,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $38,000. Required: a. Determine the patent amortization expense for Year 4 ended December 31. b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Chart of Accounts CHART OF ACCOUNTS Kleen Company General Ledger

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 64E
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Amortization entries Instructions Chart of Accounts First Question Journal Instructions Kleen Company acquired patent rights on January 10 of Year 1 for $2,800,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $38,000. Required: a. Determine the patent amortization expense for Year 4 ended December 31. b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Chart of Accounts CHART OF ACCOUNTS Kleen Company General Ledger
Transcribed Image Text:Amortization entries Instructions Chart of Accounts First Question Journal Instructions Kleen Company acquired patent rights on January 10 of Year 1 for $2,800,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $38,000. Required: a. Determine the patent amortization expense for Year 4 ended December 31. b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Chart of Accounts CHART OF ACCOUNTS Kleen Company General Ledger
Journal Shaded cells have feedback. b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. Refer to the chart of accounts for the exact wording of the acco journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit amount is entered. How does grading work? JOURNAL Score: 17/25 CREDIT ACCOUNTING ASSETS LIABIL DATE DESCRIPTION POST. REF. DEBIT 1 Adjusting Entries 357,600.00 357,600.00 K Points: 2 Jun. 2 Amortization Expense-Patents Amortization ExpensE
Transcribed Image Text:Journal Shaded cells have feedback. b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. Refer to the chart of accounts for the exact wording of the acco journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit amount is entered. How does grading work? JOURNAL Score: 17/25 CREDIT ACCOUNTING ASSETS LIABIL DATE DESCRIPTION POST. REF. DEBIT 1 Adjusting Entries 357,600.00 357,600.00 K Points: 2 Jun. 2 Amortization Expense-Patents Amortization ExpensE
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