Question

On October 1, 2017, Kingsway Broadcasting purchased for $400,000 the copyright to publish the music composed by a local Celtic group. Kingsway expects the music to be sold over the next four years. The company uses the straight-Jine method to amortize intangibles. Required: Prepare entries to record: a. The purchase of the copyright. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record purchase of copyright. Note: Enter debits before credits Date General Journal Debit Credit Oct 01, 2017 Record entry Clear entry View general journal

Answer 1

Journal entries are as prepared below:

	Date	Particulars	L.F	Amount ($)	Amount ($)
	2017
a	Oct-01	Copyright		400,000
		Cash			400,000
		(for copyright purchased)
b	Dec-31	Amortization expense-Copyright (400,000/4*3/12)		25,000
		Accumulated amortization-Copyright			25,000
		(For amortization expense recorded)