hese are selected 2017 transactions for Martinez Corporation: Prepare all adjust
ID: 2508436 • Letter: H
Question
hese are selected 2017 transactions for Martinez Corporation:
Prepare all adjusting entries at December 31 to record amortization required by the events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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 $162,500. The copyright has a useful life of 5 years and a remaining legal life of 33 years. Mar. 1 Purchased a patent with an estimated useful life of 6 years and a legal life of 21 years for $96,840. Sept. 1 Purchased a small company and recorded goodwill of $150,950. Its useful life is indefinite.Explanation / Answer
Date Account Titles and Explanation Debit Credit Dec. 31 Amortization Expense - Copyrights($162,500 / 5) $32,500 Copyrights $32,500 Dec. 31 Amortization Expense - Patents [($96,840 / 6) * (10 /12 )] $13,450 Patents $13,450 Dec. 31 No Entry
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