Question

Problem 9-19A Intangible assets LO7 On October 1, 2020, Kingsway Broadcasting purchased for $330,000 the copyright to publish the music composed by a local Celtic group. Kingsway expects the music to be sold over the next six years. The company uses the straight-line method to amortize intangibles. Required: Prepare entries to record: a. The purchase of the copyright View transaction list Journal entry worksheet Record purchase of copyright. Note: Enter debits before credits General Journal Debit Credit Dato Oct 01, 2020 < Prey. 7 of 28 !!! Next >

Answer 1

Solution:

a. To record purchase of copyright:

Date	General Journal	Debit	Credit
Oct. 1, 2020	Copyright	$330,000
	Cash		$330,000

b. To record amortization of copyright:

Workings:

Annual Amortization expense = $330,000 / 6 = $55,000

Thus, amortization expense = ($55,000*3month / 12) = $13,750

Alternatively, you can use 'Copyright' account instead of 'Accumulated amortization' account in part b.