Blackford and Medford Publishing Company own the copyrights on many top authors On January 5, 2020, Blackford and Medford acquired the copyright on the literary works of Susan Monroe, an underground novelist in the 1960s, for $825,000 cash Due to a recent resurgence of interest in the 1960s, the copyright has an estimated economic life of 5 years The residual value is estimated to be zero Required 1 Prepare a journal entry to record the acquisition of the copyright 2 Compute and record the 2020 amortization expense for the copyright none X Chart Of Accounts CHART OF ACCOUNTS Blackford and Medford Publishing Company General Ledger ASSETS 111 Cash 112 Petty Cash 121 Accounts Receivable 123 Allowance for Doubtful Accounts 124 Notes Receivable 125 Supplies 126 Prepaid Insurance 128 Inventory 129 Interest Receivable 130 Investment 131 Land 132 Buildings 133 Equipment (pump) 133 1 Equipment (testing apparatus) 134 Furniture 135 Truck 139 Accumulated Depreciation 141 Patent 142 Copyright 143 Trademark 144 Franchise 145 Goodwill 151 Natural Resources 159 Accumulated Depletion LIABILITIES 211 Accounts Payable 212 Notes Payable 213 Income Taxes Payable 214 Wages Payable 215 Utilities Payable 216 Insurance Payable 217 Rent Payable 221 Interest Payable 222 Unearned Sales Revenue 231 Bonds Payable EQUITY 311 Common Stock 321 Retained Earnings 331 Dividends REVENUE 411 Sales Revenue 412 Service Revenue 413 Interest Income 414 Rent Revenue 431 Gain on Disposal of Property, Plant, and Equipment EXPENSES 511 Cost of Goods Sold 512 Advertising Expense 513 Supplies Expense 514 Utilities Expense 516 Insurance Expense 517 Research and Development Expense 518 Bad Debt Expense 521 Wages Expense 531 Interest Expense 532 Organizational Costs 533 Legal Expense 541 Amortization Expense 542 Depreciation Expense 551 Income Taxes Expense 559 Miscellaneous Expense 561 Loss on Disposal of Property, Plant, and Equipment 562 Loss from Impairment none X General Journal General Journal Instructions Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for spaces or journal explanations Every line on a journal page is used for debit or credit entries Do not add explanations or skip a line between journal entries CNOW journals will automatically indent a credit entry when a credit amount is entered 1 Prepare a journal entry to record the acquisition of the copyright on January 05 PAGE 1 GENERAL JOURNAL IMPACT ON FINANCIAL STATEMENTS INCOME STATEMENT BALANCE SHEET DATE ACCOUNT TITLE POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME 1

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Blackford and Medford Publishing Company own the copyrights on many top authors. On January 5, 2020, Blackford and Medford acquired the copyright on the literary

Blackford and Medford Publishing Company own the copyrights on many top authors. On January 5, 2020, Blackford and Medford acquired the copyright on the literary works of Susan Monroe, an underground novelist in the 1960s, for $825,000 cash. Due to a recent resurgence of interest in the 1960s, the copyright has an estimated economic life of 5 years. The residual value is estimated to be zero.

	Required:
1.	Prepare a journal entry to record the acquisition of the copyright.
2.	Compute and record the 2020 amortization expense for the copyright.

none

Chart Of Accounts

CHART OF ACCOUNTS

Blackford and Medford Publishing Company

General Ledger

	ASSETS
111	Cash
112	Petty Cash
121	Accounts Receivable
123	Allowance for Doubtful Accounts
124	Notes Receivable
125	Supplies
126	Prepaid Insurance
128	Inventory
129	Interest Receivable
130	Investment
131	Land
132	Buildings
133	Equipment (pump)
133.1	Equipment (testing apparatus)
134	Furniture
135	Truck
139	Accumulated Depreciation
141	Patent
142	Copyright
143	Trademark
144	Franchise
145	Goodwill
151	Natural Resources
159	Accumulated Depletion

	LIABILITIES
211	Accounts Payable
212	Notes Payable
213	Income Taxes Payable
214	Wages Payable
215	Utilities Payable
216	Insurance Payable
217	Rent Payable
221	Interest Payable
222	Unearned Sales Revenue
231	Bonds Payable

	EQUITY
311	Common Stock
321	Retained Earnings
331	Dividends

	REVENUE
411	Sales Revenue
412	Service Revenue
413	Interest Income
414	Rent Revenue
431	Gain on Disposal of Property, Plant, and Equipment

	EXPENSES
511	Cost of Goods Sold
512	Advertising Expense
513	Supplies Expense
514	Utilities Expense
516	Insurance Expense
517	Research and Development Expense
518	Bad Debt Expense
521	Wages Expense
531	Interest Expense
532	Organizational Costs
533	Legal Expense
541	Amortization Expense
542	Depreciation Expense
551	Income Taxes Expense
559	Miscellaneous Expense
561	Loss on Disposal of Property, Plant, and Equipment
562	Loss from Impairment

none

General Journal

General Journal Instructions

Refer to the chart of accounts for the exact wording of the account titles.

CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries.

CNOW journals will automatically indent a credit entry when a credit amount is entered.

1. Prepare a journal entry to record the acquisition of the copyright on January 05.

PAGE 1

GENERAL JOURNAL

IMPACT ON FINANCIAL STATEMENTS

INCOME STATEMENT

BALANCE SHEET