1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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)

You might be interested in
A contract in which the vendor (seller) agrees to convey the title to the real property after the vendee (buyer) has met certain
lubasha [3.4K]
The name of the contract is CALIFORNIA SALES CONTRACT AND CIVIL CODE. This contract is majorly used for purchase of lands in California. The conditions attached to the use of the contract has make it less attractive to people who desire to purchase landed properties in California.
8 0
3 years ago
The price at which a stock can be sold depends upon a number of factors. Which statement below is notone of those factors?
Juli2301 [7.4K]

Answer:

The answer is C. How high the par value

Explanation:

Par value is sometimes called as the nominal value or face value. What it means is that it is the value given through an initial valuation and the Par value is not set by the "supply and demand" in the market. Because of this, It has a very little impact on the market price of a Share.

However, when it comes to Corporate bonds and fixed-income instruments, par value becomes important as it is considered in calculating the maturity time and the interest rates.

5 0
3 years ago
Communication flows in all directions with little concern for the formal hierarchy in a(n) ________ structure, but this structur
rjkz [21]

Answer: Team based

Explanation:

In a team based structure there is easy flow of communication and idea, with little concern for hierarchical structure, it is characterize by low formalization.

8 0
4 years ago
Augie purchased one new asset during the year (five-year property) on November 10, 2017, at a cost of $660,000. She would like t
Alborosie

Answer:option (e)

None of the above

Explanation:

The mid quarter convention applies to this MACRS calculation.

§ 179 expense $500,000

Additional first-year depreciation= [($650,000 - $500,000) × 0.50]

$75,000 MACRS cost recovery ($75,000 × 0.05) 3,750

Total = $78,750

Income from the business before the cost is recovered is $600,000 less. Therefore, the Total cost recovered;

Total cost recovery= (78,750)

§ 179 business income limitation $521,250

Therefore, Augie's total cost recovery deduction;

= $500,000 + $78,750

= $578,750.

4 0
3 years ago
"An investor that has been unaffiliated with the issuer for at least 3 months is permitted to sell restricted shares under Rule
Travka [436]

Answer:

six months

Explanation:

Restricted shares are form of securities that are gotten in private sales, from an affiliate of the issuer or through an issuing house. Basically, restricted securities are a form of compensation given to investors in exchange for providing start up capital to a company hence are issued through employee stock benefit plans, private placements, regulation offerings etc.

According to rule 144, before an investor could sell any restricted securities in the market place, such securities must be held for a certain period of time, usually six months for a reporting company, who is subject to the reporting requirements of SEC 1949.

However, where the issuer of the securities is not subjected to reporting requirements of SEC, then the investor could hold them for a period of one year.

4 0
3 years ago
Other questions:
  • When an economic system is characterized by an emphasis on entrepreneurship and free enterprise, we would classify it as a _____
    15·1 answer
  • 3. What are the most important elements of Toyota’s organizational structure?
    15·1 answer
  • The records of Gemini Company show a contribution margin ratio of 40%. The company desires to earn a profit of $40,000 and has f
    5·1 answer
  • An import _____ is a type of trade restriction that sets a physical limit on the quantity of a product that can be imported into
    6·1 answer
  • Why are bylaws important to governors?
    13·1 answer
  • Using your knowledge of SMART goals, select the best goal. I will start saving money toward a new house next week. I will save $
    10·1 answer
  • If the price elasticity of supply is 0.6, and a price increase led to a 3.7 percent increase in quantity supplied, then the pric
    12·1 answer
  • In the phrase generally accepted accounting principles the words accounting principles refers to
    9·1 answer
  • The rates of return on Cherry Jalopies, Inc., stock over the last five years were 22 percent, 11 percent, −4 percent, 6 percent,
    12·1 answer
  • What is the top ten most popular styles right now.... 2021?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!