Galena Company purchases a patent for $120,000 on January 2, 2010. Its estimated useful life is 10

Question:

Galena Company purchases a patent for $120,000 on January 2, 2010. Its estimated useful life is 10 years.
(a) Prepare the journal entry to record patent expense for the first year.
(b) Show how this patent is reported on the at the end of the first year.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...