Question

Power industries has acquired a patent for $16,000. its useful life is expected to be four years. Prepare the yearly journal entry to recognize periodic amortization.

Answer 1

If Power industries has acquired a patent for $16,000. its useful life is expected to be four years. The yearly journal entry to recognize periodic amortization is: Debit  Amortization Expense - Patents $4,000; Credit Patents $4,000.

Journal entry

If the company has acquired a patent for the amount of  $16,000 in which the  useful life is expected to be four years. The appropriate  journal entry to recognize periodic amortization is:

Power industries journal entry

Debit  Amortization Expense - Patents $4,000

Credit Patents $4,000

($16,000/4 years)

(To record periodic amortization recognized)

Therefore the yearly journal entry to recognize periodic amortization is: Debit  Amortization Expense - Patents $4,000; Credit Patents $4,000.

Learn more about Journal entry here:brainly.com/question/14279491

#SPJ1