Accounting for Trade Names

Part 1: On January 1, 2019, Outkast Corporation applied for a trade name, incurring legal costs of $16,000. On January 1, 2020, Outkast incurred $7,200 of legal fees in a successful defense of its trade name. All expenditures were made with cash. Outkast amortizes the trade name over 10 years.

Prepare all journal entries relating to this trade name for 2019 and 2020.

Date	Account	Debit	Credit
01/01/2019
12/31/2019
01/01/2020
12/31/2020

What is the carrying value of the trade name on January 1, 2021?

$

Part 2: Beginning in 2021, Outkast determined that the trade name will provide no future benefits beyond December 31, 2023. Prepare Outkasts journal entries relating to this trade name for 2021 to 2023.

Date	Account	Debit	Credit
12/31/2021
12/31/2022
12/31/2023