Question

These are selected 2017 transactions for Wyle Corporation:

Answer 1

Answer and Explanation:

The Journal entry is shown below:-

1. Amortization expense - copyrights $20,000  ($120,000 ÷ 6)

         To copyrights $20,000

(Being  amortization expense is recorded)

Here we debited the  amortization expense - copyrights as expenses is increasing and we credited the copyrights as assets is decreasing.

2. Amortization expense - Patents Dr, $11,250 ($54,000 ÷ 4) × 10 ÷ 12

          To Patents $11,250

(Being  amortization expense is recorded)

Here we debited the  amortization expense - patents as expenses is increasing and we credited the patents as assets is decreasing.

3. No Journal entry is required as IFRS good will is no longer granted to be amortized.