Grouper Corporation purchases a patent from Sheridan Company on January 1, 2017,

Question

Grouper Corporation purchases a patent from Sheridan Company on January 1, 2017, for $46,000. The patent has a remaining legal life of 16 years. Grouper feels the patent will be useful for 10 years.

Prepare Grouper’s journal entries to record the purchase of the patent and 2017 amortization. (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 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Account Titles and Explanation

Debit

Credit

(To record purchase of patents)

(To record amortization of patents)

Explanation / Answer

Patents $ 46,000 Cash $ 46,000 (To record purchase of patents) Amortization expenses ($46,000/10) $    4,600 Patents $    4,600 (To record amortization of patents)

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.