Question

S Kimmel, Financial Accounting, se Help System Announcements CALCULATOR PRINTER VERSION BACK Brief Exercise 9-9 Wildhorse Co. purchases a patent for $172,200 on January 2, 2017. Its estimated useful life is 6 years (a) Prepare the journal entry to record amortization expense for the first year. (Credit account titles are automatically indented when amount is entered. Do not Indent manually. If ne entry is required, select "No Entry for the account sities and enter for the amounts.) Det Credit Account Titles and Explanation Patents 17220 Cash 17220 (b) Show how this patent is reported on the balance sheet at the end of the first year Intangible Assets Amortization Expense 28700 Click if you would like to show Work for this question Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT INTERACTIVE TUTORIAL Question Attempts of 3 used SAVE FOR LATER SUBMIT ANSWER 24 A A Macboo $ 80 F DOO 00014 « @ A * $ 4 3 % 5 & 7 6 8 9 W E R т Y

Answer 1

Adjusting entry
S.no.	Accounts title and explanation		Debit $	Credit $
a.	Amortization expense (172,200*1/6)	28700
	Patents right				28700
	(for amortization expense charged)
Balance Sheet (Extract)
Intangible asset:
Patent rights (172,200-28,700)		1,43,500