A patent already on the books was purchased by your company on January 5, 2021 from a competitor. The patent has a remaining legal life of 10 years. Assume the patent will benefit the company for at least 15 years.

The Preliminary trial Balance has Patent with a $5,000 debit balance. While the post Closing trial Balance has no patent recorded.

Prepare end of year adjusting entries, corrections, and any other necessary entries necessary to prepare accurate financial statements for 2021.