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Kleen Company acquired patent rights on January 10 of Year 1 for $857,700. The patent has a useful life equal to its legal life of
Kleen Company acquired patent rights on January 10 of Year 1 for $857,700. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $36,000.
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a. | Determine the patent amortization expense for Year 4 ended December 31. Round your answer to the nearest whole dollar. |
b. | Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. |
a. Determine the patent amortization expense for Year 4 ended December 31. Round your answer to the nearest whole dollar.
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PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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1 | Adjusting Entries | |||||||
2 | ||||||||
3 |
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