These are selected 2017 transactions for Blue Corporation: Jan. 1 Purchased a co

Question

These are selected 2017 transactions for Blue Corporation: Jan. 1 Purchased a copyright for $190,800. The copyright has a useful life of 6 years and a remaining legal life of 35 years. Sept. 1 Purchased a small company and recorded goodwil of $153,700. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization required by the events. (Credit account titles are automati not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Dec. 31 Amortization Expense Debit Credit 31800 Copyrights 31800 (To record amortization of Copyrights) Dec. 31 Amortization Expense 20850 20850 Patents (To record amortization of Patents) Dec. 31,Amortization Expense To record amortization of Goodwill)

Explanation / Answer

Journal entry :

Dec 31

Date accounts & explanation debit credit Dec 31 Amortization expense 31800 Copyrights 31800 (To record amortization of copyrights) Dec 31 Amortization expense (83400/5*10/12) 13900    Patents 13900 (To record amortization of patent)

Dec 31

No entry

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