Brief Exercise 12-3

Kingbird, Inc., spent $55,800 in attorney fees while developing the trade name of its new product, the Mean Bean Machine.

Prepare the journal entries to record the $55,800 expenditure and the first years amortization, using an 6-year life.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

(To record expenditure of trade names)

(To record amortization expense)