On February 3, 2023, Secure Software Group purchased the patent for a new software for cash of $220,800. The company expects the software to be sold over the next five years and uses the straight-line method to amortize intangibles.

Required1. Prepare entries to record the:

a. Purchase of the software patent.

b. Straight-line amortization for the year ended December 31, 2023, calculated to the nearest whole month. Round to the nearest dollar.

2. On December 31, 2023, the company’s adjusted trial balance showed the additional asset accounts shown below. Prepare the asset section of the balance sheet at December 31, 2023, including the patent purchased on February 3, 2023.

Transcribed Image Text:

Accounts receivable $285,600 Accumulated depreciation, equipment 259,200 Accumulated depreciation, building 189,000 Allowance for doubtful accounts 8,400 Cash Equipment Building Land Merchandise inventory 103,200 477,600 595,200 110,400 135,600