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Stellar Enterprises is a large Canadian company traded on the Toronto Stock Exchange. Stellar purchased two copyrights during 2020. The first copyright was purchased on
Stellar Enterprises is a large Canadian company traded on the Toronto Stock Exchange. Stellar purchased two copyrights during 2020. The first copyright was purchased on February 1 for $17,150 and was expected to have a useful life until the end of December, 2022. The second copyright was purchased on July 1 for $88,200 and was expected to have an indefinite useful life. Stellar's fiscal year- end was December 31. On July 1, 2021, Stellar paid $8,820 in legal fees to successfully defend the first copyright in court. On September 1, 2021, Stellar 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, Stellar sold the second copyright for $99,050. Prepare the journal entries on the books of Stellar to record the above transactions. (Hint: don't forget the year-end amortization entries). (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Feb. 1, v. Intangible Assets - Copyrights Cash Jul. 1, v Intangible Assets - Copyrights Cash Dec. 3 v Amortization Expense Accumulated Amortization - Copyrights Jul. 1, v. Intangible Assets - Patents Cash Dec. 3 v Amortization Expense Accumulated Amortization - Copyrights Apr. 1, 2022 Amortization Expense Accumulated Amortization - Copyrights (To record amortization expense) Apr. 1, 2022 Cash Accumulated Amortization - Copyrights Intangible Assets - Copyrights Gain on Disposal of Intangible Assets
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