These are selected 2014 transactions for Amarista Corporation: Prepare all adjus

Question

These are selected 2014 transactions for Amarista Corporation:

Prepare all adjusting entries at December 31 to record amortization required by the events. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

(To record amortization of Copyrights)

Dec. 31

(To record amortization of Patents)

Dec. 31

(To record amortization of Goodwill)

Jan. 1 Purchased a copyright for $163,550. The copyright has a useful life of 5 years and a remaining legal life of 31 years. Mar. 1 Purchased a patent with an estimated useful life of 5 years and a legal life of 24 years for $78,000. Sept. 1 Purchased a small company and recorded goodwill of $152,960. Its useful life is indefinite.

Explanation / Answer

Date Account Titles and Explanation Debit Credit Explanation Dec. 31 Amortization Expenses A/c 32710 As per Us gaap , period of amortization will be useful life or legal life whichever is shorter Copyright A/c 32710 (To record amortization of Copyrights) Dec. 31 Amortization Expenses A/c 15600 As per Us gaap , period of amortization will be useful life or legal life whichever is shorter Patent A/c 15600 (To record amortization of Patents) Dec. 31 No Entry 0 As per US GAAP, there is no amortization of any intangible assets with indefinite life No Entry 0 (To record amortization of Goodwill)

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