Question
Riverbed Enterprises is a large Canadian company traded on the Toronto Stock Exchange. Riverbed purchased two copyrights during 2020. The first copyright was purchased on
Riverbed Enterprises is a large Canadian company traded on the Toronto Stock Exchange. Riverbed purchased two copyrights during 2020. The first copyright was purchased on February 1 for $21,700 and was expected to have a useful life until the end of December, 2022. The second copyright was purchased on July 1 for $126,000 and was expected to have an indefinite useful life. Riverbed's fiscal year-end was December 31. On July 1, 2021, Riverbed paid $5,040 in legal fees to successfully defend the first copyright in court. On September 1, 2021, Riverbed determined that the second copyright would no longer have an indefinite useful life, and in fact would have a useful life of another 7 years, beginning September 1, 2021. On April 1, 2022, Riverbed sold the second copyright for $133,700. Prepare the journal entries on the books of Riverbed to record the above transactions. (Hint: dont forget the year-end amortization entries).
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