Jan. 1 Purchased a small company and recorded goodwill of $177,000. Its useful life is indefinite. May 1 Purchased for $66,000 a patent with an estimated useful life of 4 years and a legal life of 20 years. Prepare necessary adjusting entries at December 31 to record amortization required by the events above. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Jan. 1 Purchased a small company and recorded goodwill of $177,000. Its useful life is indefinite. May 1 Purchased for $66,000 a patent with an estimated useful life of 4 years and a legal life of 20 years. Prepare necessary adjusting entries at December 31 to record amortization required by the events above. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement
Section: Chapter Questions
Problem 19E
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Jan. 1 | Purchased a small company and recorded |
|
May 1 | Purchased for $66,000 a patent with an estimated useful life of 4 years and a legal life of 20 years. |
Prepare necessary
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