Question

Milano Gallery purchases the copyright on an oil painting for $480,000 on January 1, 2017. The copyright legally protects its owner for 12 more years. The company plans to market and sell prints of the original for 19 years. Prepare entries to record the purchase of the copyright on January 1, 2017, and its annual amortization on December 31, 2017. View transaction list Journal entry worksheet Record the purchase of the copyright on an oil painting for $480,000 cash. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01 Record entry Clear entry View general journal

Answer 1

Answer:

DATE	ACCOUNT TITLES AND EXPLANATIONS	DEBIT ($)	CREDIT ($)
Jan.1	Copyright	4,80,000
	Cash		4,80,000
	(To Record purchase of Copyright)
Dec.31	Amortization Expense - Copyright	40,000
	Accumulated Amortization - Copyright		40,000
	(To Record Copyright Amortization)
Amortization Expense of Copyright = ($480,000 / 12 years)