Question
Milano Gallery purchases the copyright on an oil painting for $390,000 on January 1, 2017. The copyright legally protects its owner for 10 more years.
Milano Gallery purchases the copyright on an oil painting for $390,000 on January 1, 2017. The copyright legally protects its owner for 10 more years. The company plans to market and sell prints of the original for 19 years.
Prepare entries to record the purchase of the copyright on January 1, 2017, and its annual amortization on December 31, 2017.
Record the year-end adjusting entry for the amortization expense of the copyright.
| No | Date | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | Jan 01 | Copyright | 390,000 | |
| Cash | 390,000 | |||
I just need to know how to journalize the last transaction.
the adjusting entry is'nt $39,000 or $20,526, those were both wrong when i tried them.
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
