The intangible assets section of Cheyenne Corporation’s balance sheet at Decembe
ID: 2566391 • Letter: T
Question
The intangible assets section of Cheyenne Corporation’s balance sheet at December 31, 2017, is presented here.
$63,000
11,100
$74,100
The patent was acquired in January 2017 and has a useful life of 10 years. The copyright was acquired in January 2011 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2018.
Acquired a copyright for $237,000. The copyright has a useful life and legal life of 50 years
Patents ($71,000 cost less $8,000 amortization)$63,000
Copyrights ($54,500 cost less $43,400 amortization)11,100
Total$74,100
(b) Prepare journal entries to record the 2018 amortization expense for intangible assets. (Credit account titles are automatically indented when amount is entered. Do 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 Debit Credit Dec. 31 To record amortization of patents) Dec. 31 (To record amortization of copyrights)Explanation / Answer
Amortization expense 10350 =(71000/10)+(27000/9)+(10000/20/2) Patents 10350 Amortization expense 6635 =(54500/10)+(237000/50/12*3) Copyrights 6635
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