1) Perf Antiques purchased the copyright on a watercolour painting for $200,280 on January 1, 2020. The copyright legally protects its owner for 18 more years. However, Perf plans to market and sell prints of the original for the next 12 years only. Prepare journal entries to record the purchase of the copyright and the annual amortization of the copyright on December 31, 2020. The company uses the straight-line method to amortize intangibles. Assume that cash was paid.

Answer is complete but not entirely correct. General Journal No Date Credit Debit 200,280 1 January 01, 2020 Copyrights Cash 200,280 11,127 N December 31, 202 Amortization expense, copyrights Accumulated amortization, copyrights 11,127 X