Question

Kingbird, Inc., spent $55,800 in attorney fees while developing the trade name of its new product, the Mean Bean Machine.

Prepare the journal entries to record the $55,800 expenditure and the first year’s amortization, using an 6-year life. Use the account title "Trade Names". (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title to record expenditure of trade names	enter a debit amount	enter a credit amount
enter an account title to record expenditure of trade names	enter a debit amount	enter a credit amount
(To record expenditure of trade names)
enter an account title to record amortization expense	enter a debit amount	enter a credit amount
enter an account title to record amortization expense	enter a debit amount	enter a credit amount
(To record amortization expense)

Answer 1

Account Titles and Explanation	Debit	Credit
Trade Names	55800
Cash		55800
Account Titles and Explanation	Debit	Credit
Amortization expense	9300		=55800/6
Trade Names		9300