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iren2701 [21]
3 years ago
7

On January 2, 2016, Alpha Company purchased a patent for $38,500 plus $2,000 in legal fees. On that date, the patent had a remai

ning legal life of 13 years. Alpha Company expects to use the patent for six years. Use this information to prepare the General Journal entry (without explanation) for December 31, 2016 end of the year adjusting entry. If no entry is required then write "No Entry Required."
Business
1 answer:
Fittoniya [83]3 years ago
7 0

Answer:

General Journal entry:

Account                                     Debit                             Credit

Amortization expense              $6,750

Accumulated Amortization                                              $6,750

(patent)

Explanation:

Given Data:

Price of patent=$38,500

Legal fees=$2,000

legal Life=13 years

useful life=6 years

Required:

Journal Entry

Solution:

Amortization:

For intangible assets, amortization is the decrease in book value over the period of time. However intangible assets have no physical appearance and they do not face any damage like fixed assets but with the passage of time their value decrease.

Calculating amortization expense for one year:

Amortization expense=\frac{Purchase\ Price+Legal\ Fees}{Useful\ Life}

Amortization\ expense=\frac{\$38,500+\$2000}{6}\\ Amortization\ expense=\$6,750

General Journal entry:

Account                                     Debit                             Credit

Amortization expense              $6,750

Accumulated Amortization                                              $6,750

(patent)

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An organization's standards of right and wrong that influence employee behavior are referred to as ethics.

<h3>What is meant by ethics?</h3>

This is the term that is used to refer to the ways that the people in an organization would be able able to conduct themselves to the established rules that are in existent in a given establishment. It is the way that the people would follow the moral part of the company and stay on the oath of what is considered to be good.

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Assume that the marginal propensity to consume is 0.75, net exports decline by $10 billion, and government spending increases by
kolezko [41]

Answer: $40 billion

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The change will be determined by the value of the Multiplier.

The Multiplier shows how much a change in government spending and exports will impart GDP.

Multiplier =  1 / ( 1 - MPC)

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3 years ago
Cash $280,000 Marketable Securities 131,000 Accounts and Notes Receivable (net) 395,000 Inventories 570,000 Prepaid Expenses 19
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Answer:Current Ratio=4.5

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Current Ratio = Current Assets / Current Liabilities

 

Current assets = Cash + Marketable Securities + Accounts and Notes Receivable+  Inventories +  Prepaid expenses

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The weekly incomes of shift foreman for a given industry follow a normal probability distribution. With a mean of $1,000 and a s
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Answer:

There is a 0.2419% for a foreman to earn either $1,100 or $900

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We look into the normal distribution table for the value of z = -1 or 1

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