For each of the following unrelated situations, prepare a journal entry to record the annual amortization expense. Use December 31, 2019 as the date of the journal entry. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). a) A patent with a eight-year remaining legal life was purchased for $125,000. The patent will be usable for another five years. General Journa Page 01 AccounVExplanation PR Debi Credit Date b) A patent was acquired on a new smartwatch. The cost of the patent itself was only $35,000, but the market value of the patent is $815,000. The company expects to be able to use this patent for all twenty years of its life. Date General Journal Account/Explanation Page GT PR Debil Cred
For each of the following unrelated situations, prepare a journal entry to record the annual amortization expense. Use December 31, 2019 as the date of the journal entry. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). a) A patent with a eight-year remaining legal life was purchased for $125,000. The patent will be usable for another five years. General Journa Page 01 AccounVExplanation PR Debi Credit Date b) A patent was acquired on a new smartwatch. The cost of the patent itself was only $35,000, but the market value of the patent is $815,000. The company expects to be able to use this patent for all twenty years of its life. Date General Journal Account/Explanation Page GT PR Debil Cred
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:For each of the following unrelated situations, prepare a journal entry to record the annual amortization expense. Use December 31, 2019 as the date of the
journal entry.
Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (le. January 15 would be
15/Jan).
a) A patent with a eight-year remaining legal life was purchased for $125,000. The patent will be usable for another five years.
Page G
General Journal
AccounVExplanation
PR Debil Credit
Dale
b) A patent was acquired on a new smartwatch. The cost of the patent itself was only $35,000, but the market value of the patent is $815,000. The company
expects to be able to use this patent for all twenty years of its life.
Page Gf
PR Debit Credit
Date
General Journal
Account Explanation
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