Question

Exercise 8-19 Amortization of intangible assets LO P4 Milano Gallery purchases the copyright on an oil painting for $450,000 on January 1, 2017. The copyright legally protects its owner for 10 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 < 1 2 Record the purchase of the copyright on an oil painting for $450.000 cash Note: Enter debit before credits General Jou Debit Cred Date Jan 01 Record entry Cry Vw gradjouma < Prey 37 of 38 !! Score.shower >

Answer 1

ANSWER:-

1) Record the purchase of copyright on an oil painting for $450,000 cash

Date	General Journal	Debit	Credit
Jan 01	Copyright	$450,000
	Cash		$450,000
	( To record purchase of copyright )

2) Record the year end adjusting entry for the amortization expense of the copyright

Date	General Journal	Debit	Credit
Dec 31	Amortization Expense ($450,000/10years)	$45,000
	Accumulated Amortization		$45,000
	( To record amortization expense of copyright )