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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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Helga [31]

Answer:

Marigold Corp. gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per books, 4/30 $13700 Deposits in transit 1900 Notes receivable and interest collected by bank 4620 Bank charge for check printing 160 Outstanding checks 9400 NSF check 870.

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Explanation:

a) Data and Calculations:

Cash balance per books, 4/30 = $13,700

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b) Cash balance per books, 4/30                           $13,700

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Bank charge for check printing                                    -160

NSF check                                                                     -870

Adjusted cash balance as per books on April 30 $17,290

c) The adjusted cash balance of $17,290 will be equal to the balance on the bank statement on the same date, unless there is another accounting error that is not listed above.

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3 years ago
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jasenka [17]

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Explanation:

We know that

The formula to compute the price elasticity of demand is shown below:

= (Percentage change in quantity demanded) ÷ (percentage change in price)

The classification as follows

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2. Inelastic = When elasticity is below than one

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klasskru [66]

Answer:

The correct answer is option c.

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This is because of the law of demand and supply.

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