" A secured loan is, a loan in which borrower pledges some asset as calateral for the loan, which them becomes a secured dept owned to the creditor who gives the loan."
Answer:
The journal entry is as follows:
Explanation:
January 5 Patent A/c..................Dr $100,000
To Cash A/c............Cr $100,000
As patent is purchased so asset is increasing and any increase in asset would be debited. Therefore, patent account is debited. And it is purchased against cash and decrease in asset is credited. Therefore, cash account is credited.
December 31 Amortization expense- Patent................Dr $5,000
To Accumulated Amortization- Patent........Cr $5,000
Working Note:
Patent Cost is $100,000
Useful life is 20 years
Amortization expense = Patent Cost / Useful life of asset
= $100,000 / 20
= $5,000
Answer:
D. Net Accounts Receivable will be understated
Explanation:
Answer:
i want to see the answer to this question
C, is the correct answer I believe.
