The intangible assets section of Cedeno Corporation’s balance sheet at December

Question

The intangible assets section of Cedeno Corporation’s balance sheet at December 31, 2014, is presented here.

$78,950

11,400

$90,350

The patent was acquired in January 2014 and has a useful life of 10 years. The copyright was acquired in January 2008 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2015.

Prepare journal entries to record the 2015 amortization expense for intangible assets. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Patents ($85,900 cost less $6,950 amortization)

$78,950

Copyrights ($53,900 cost less $42,500 amortization)

11,400

Total

$90,350

Explanation / Answer

Ans

Workings

Date Account Head Debit Credit 02, jan Legal Expense      54,000.00 Cash      54,000.00 01'Jul Research and Development Expenses 2,53,900.00 Cash 2,53,900.00 01'Jul Patent      30,000.00 Cash      30,000.00 01'Sep Advertisement Expense      46,600.00 Cash      46,600.00 01'Oct Copyrights 2,21,000.00 Cash 2,21,000.00 31'Dec Amortisation Expense-Patent      10,090.00 Accumulated Amortisation-Patent      10,090.00 Amortisation Expense-Copyright        6,495.00 Accumulated Amortisation-Copyright        6,495.00

Workings

Opening Block Additions Dep on Ope Block Dep on Additions Total Patents 85,900.00      30,000.00 8,590.00 1,500.00 10,090.00 Copyrights 53,900.00 2,21,000.00 5,390.00 1,105.00     6,495.00

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