Copyright - amortization schedule
Steady Company purchased a copyright worth P300,000 in 2021. The entity followed the policy of amortizing copyright cost over the
expected period of benefit by the straight line method.
The copyright is expected to be useful in producing revenue for 5 years.
Prepare the amortization schedule.
Homework Answers
Basically, you have to "spread evenly" the cost of copyright over its useful life if the straight-line method is used to amortize the cost. In this case, you recognize 60,000 amortization a year (300,000/5 years). Please see in explanation part for the solution.
Additionally, you would need to record an adjusting journal entry to record the annual amortization of the copyright as follows:
Debit: Amortization expense 60,000
Credit: Accumulated Amortization 60,000
Amortization of Copyright
CHECK FIGURE: 6. $24,000 On October 1, 2020. Kingsway Broadcasting purchased for $288.000 the copyright to...
CHECK FIGURE: 6. $24,000 On October 1, 2020. Kingsway Broadcasting purchased for $288.000 the copyright to publish the music composed by a local Celtic group. Kingsway expects the music to be sold over the next three years. The company uses the straight-line method to amortize intangibles. Page 679 Required Prepare entries to record: a. The purchase of the copyright b. The amortization for the year ended December 31. 2020. calculated to the nearest whole month
Problem 9-19A Intangible assets LO7 On October 1, 2020, Kingsway Broadcasting purchased for $400,000 the copyright...
Problem 9-19A Intangible assets LO7 On October 1, 2020, Kingsway Broadcasting purchased for $400,000 the copyright to publish the music composed by a local Celtic group. Kingsway expects the music to be sold over the next four years. The company uses the straight-line method to amortize intangibles. Required: Prepare entries to record: a. The purchase of the copyright. b. The amortization for the year ended December 31, 2020, calculated to the nearest whole month.
These are selected 2022 transactions for Bramble Corporation: Purchased a copyright for $153,000. The copyright has...
These are selected 2022 transactions for Bramble Corporation: Purchased a copyright for $153,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Jan. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $96,000. Mar. 1 Purchased a small company and recorded goodwill of $183,000. Its useful life is indefinite. Sept. 1 Prepare all adjusting entries at December 31 to record amortization...
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances...
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Plant Asset Accumulated Depreciation and Amortization Land $ 170,000 $ — Buildings 1,250,000 323,900 Equipment 875,000 312,500 Automobiles and trucks 167,000 95,325 Leasehold improvements 206,000 103,000 Land improvements — — Depreciation methods and useful lives: Buildings—150% declining balance; 25 years. Equipment—Straight line; 10 years. Automobiles and trucks—200% declining balance; 5 years, all acquired after 2017. Leasehold improvements—Straight line. Land improvements—Straight line....
(Amortization Schedule—Straight-Line) Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816....
(Amortization Schedule—Straight-Line) Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Instructions Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to the nearest cent.) prepare journal entries for the issuance of the bonds, 2 years of interest payments, and retirement at maturity. Assume the same information,Using 12% effective...
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances...
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation and Amortization Category Land Buildings Equipment Automobiles and trucks Leasehold improvements Land improvements Plant Asset $ 165,000 1,000,000 625,000 162,000 196,000 318,900 307,500 90,325 98,000 Depreciation methods and useful lives: Buildings—150% declining balance; 25 years. Equipment-Straight line; 10 years. Automobiles and trucks-200% declining balance; 5 years, all acquired after 2017. Leasehold improvements-Straight line. Land improvements-Straight line. Depreciation is computed to...
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances...
At December 31, 2020, Cord Company's plant asset and accumulated
depreciation and amortization accounts had balances as follows:
Category
Plant Asset
Accumulated Depreciation
and Amortization
Land
$
185,000
$
—
Buildings
2,000,000
338,900
Equipment
1,625,000
327,500
Automobiles and trucks
182,000
110,325
Leasehold improvements
236,000
118,000
Land improvements
—
—
Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Equipment—Straight line; 10 years.
Automobiles and trucks—200% declining balance; 5 years, all
acquired after 2017.
Leasehold improvements—Straight line.
Land improvements—Straight line....
These are selected 2022 transactions for Blue Corporation: Jan. 1 Purchased a copyright for $84,000. The...
These are selected 2022 transactions for Blue Corporation: Jan. 1 Purchased a copyright for $84,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $27,000. Sept. 1 Purchased a small company and recorded goodwill of $114.000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization...
On January 1, 2020, Sweet Company acquires $130,000 of Spiderman Products, Inc., 9% bonds at a...
On January 1, 2020, Sweet Company acquires $130,000 of Spiderman Products, Inc., 9% bonds at a price of $120,632. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Sweet Company a 12% yield. The bonds are dassified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond...
On January 1, 2020, Sweet Company acquires $120,000 of Spiderman Products, Inc., 9% bonds at a...
On January 1, 2020, Sweet Company acquires $120,000 of Spiderman Products, Inc., 9% bonds at a price of $114,135. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Sweet Company a 11% yield. The bonds are classified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to o decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond...
CHECK FIGURE: 6. $24,000 On October 1, 2020. Kingsway Broadcasting purchased for $288.000 the copyright to publish the music composed by a local Celtic group. Kingsway expects the music to be sold over the next three years. The company uses the straight-line method to amortize intangibles. Page 679 Required Prepare entries to record: a. The purchase of the copyright b. The amortization for the year ended December 31. 2020. calculated to the nearest whole month
These are selected 2022 transactions for Bramble Corporation: Purchased a copyright for $153,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Jan. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $96,000. Mar. 1 Purchased a small company and recorded goodwill of $183,000. Its useful life is indefinite. Sept. 1 Prepare all adjusting entries at December 31 to record amortization...
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation and Amortization Category Land Buildings Equipment Automobiles and trucks Leasehold improvements Land improvements Plant Asset $ 165,000 1,000,000 625,000 162,000 196,000 318,900 307,500 90,325 98,000 Depreciation methods and useful lives: Buildings—150% declining balance; 25 years. Equipment-Straight line; 10 years. Automobiles and trucks-200% declining balance; 5 years, all acquired after 2017. Leasehold improvements-Straight line. Land improvements-Straight line. Depreciation is computed to...
At December 31, 2020, Cord Company's plant asset and accumulated
depreciation and amortization accounts had balances as follows:
Category
Plant Asset
Accumulated Depreciation
and Amortization
Land
$
185,000
$
—
Buildings
2,000,000
338,900
Equipment
1,625,000
327,500
Automobiles and trucks
182,000
110,325
Leasehold improvements
236,000
118,000
Land improvements
—
—
Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Equipment—Straight line; 10 years.
Automobiles and trucks—200% declining balance; 5 years, all
acquired after 2017.
Leasehold improvements—Straight line.
Land improvements—Straight line....
These are selected 2022 transactions for Blue Corporation: Jan. 1 Purchased a copyright for $84,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $27,000. Sept. 1 Purchased a small company and recorded goodwill of $114.000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization...
On January 1, 2020, Sweet Company acquires $130,000 of Spiderman Products, Inc., 9% bonds at a price of $120,632. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Sweet Company a 12% yield. The bonds are dassified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond...
On January 1, 2020, Sweet Company acquires $120,000 of Spiderman Products, Inc., 9% bonds at a price of $114,135. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Sweet Company a 11% yield. The bonds are classified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to o decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond...
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