Your answer is partially correct. Try again. These are selected 2017 transaction

Question

Your answer is partially correct. Try again. These are selected 2017 transactions for Sarasota Corporation Jan. 1 Purchased a copyright for $132,650. The copyright has a useful life of 7 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $61,920. Sept. 1 Purchased a small company and recorded goodwill of $151,400. Its useful life is indefinite. 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 Amortization Expense 18950 Copyrights 18950 (To record amortization of Copyrights) Dec. 31 Amortization Expense 15488 Patents 15488 (To record amortization of Patents) Dec. 31 No Entry No Entry (To record amortization of Goodwill)

Explanation / Answer

amortisation of patent for the year is ($61,920 / 4)*(10/12)...(10 months are to be considered since it is purchased in march)

=>$12,900.

the following will be the journal entry

Dec 31 Amortization expense $12,900 ............To Patents a/c $12,900

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