Brief Exercise 12-6

Kenoly Corporation owns a patent that has a carrying amount of $312,430. Kenoly expects future net cash flows from this patent to total $207,280. The fair value of the patent is $129,930.

Prepare Kenolys journal entry to record the loss on impairment.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

IT will be two account titles

Account Titles and Explanation	Debit	Credit
*****	*****	*****
*****	*****	*****

LIST OF ACCOUNTS BELOW

Accounts Payable

Accounts Receivable

Advertising Expense

Amortization Expense

Buildings

Cash

Computer Software Costs

Copyrights

Discount on Bonds Payable

Equipment

Franchises

Goodwill

Income Summary

Intangible Assets

Interest Expense

Inventory

Land

Legal Fees Expense

Loss on Impairment

Long-term Notes Payable

No Entry

Notes Payable

Organization Expense

Paid-in Capital in Excess of Par - Common Stock

Patents

Patent Expense

Prepaid Rent

Recovery of Loss from Impairment

Rent Expense

Rent Receivable

Rent Revenue

Research and Development Expense

Retained Earnings

Trade Names

Trademarks