Question

On February 1, 2018 Soggy Company purchased a patent for $144,000 cash. Although the patent gives legal protection for 20 years, the patent is expected to be used for only four years Read the requirements Requirement 1. Journalize the purchase of the patent. (Record debits first, then credits Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Fob 1 144.000 Patent Cash 144,000 To record purchase of patent Requirement 2. Journalize the amortization expense for the year ended December 31, 2018 Assume straight line amortization Begin by calculating the amortization expense for 2018 Select the formula, enter the amounts and calculate the amortization expense. (Enter a "o for items with a zero value. Do not round intermediary calculations. Only round the amount you input for straight line amortization to the nearest dolar) Straight-line Cost Residual value ) Useful life x( Number of months 12 ) amortization IC 5 144.000 12 ) = $ 33,000 Now, journalize the amortization expense for 2018 (Record debits first, then credits. Select the explanation on the last line of the journal entry table) Date Accounts and Explanation Debit Credit Dec 31

Answer 1

Journal

Dec. 31	Amortization expense - Patent	33,000
	Accumulated amortization - Patent		33,000
	(To record amortization of patent)

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