Question

Please detail all final answers!

e.	Prepare the journal entry to record the sale of the patent on June 30, 2018.

Martinez, Inc. acquired ล patent on January 1 , 2016 for S40, 300 cash. The patent was estrated to have ล useful life: af 10 years with rar val O Decmber 31, 2017, bfreany astrmenls were recorded for the year, management detemined that the remaining ueeful life was 7 years (with that new astimate being effective as of January 1, 2017). On June 30, 2018, the patent wEs sold for $25,300. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Required: 8. Prapare the Joumel entry to record the acquiation of the patent on January 1, 2016. View transaction list Journal entry worksheet Record the entry for acquisition of patent. Note: Enter debits berore credits. Date General Journal Debit Credit Jariuary1 2016 Record entry Clear entry View general journal b. Prepare Ihe joumal entry lo record the anriual amorlicaion for 2018 View transaction list Journal entry worksheet Record the entry for annuel arnortization af patent Ncte: Enter debits berore credts. Date General Debit Credit Decembe 31, 2016 Record entry Clear entry View general Jjournal Compute tha amount of amartiraion that woukd ba rncondad in 2117. (Round your final answer to the nearest whole dollar Delernine thegain on sae Jurne 30, 2018 Round your intemediate calculations and final answer to the nearest whole dollar.)

Answer 1

Martinez Inc Journal entries Date Account Debit Credit Calculation Reqa 1-Jan-16 Patent 40,300 Cash 40,300 Req b 31-Dec-16 Amortization expense 4,030 -40300/10 Accumulated Amortization-Patent 4,030 Reqc 31-Dec-17 Cost 40,300 4,030 36,270 -40300-4030 Amortization expense - 2016 Book Value - Jan 1, 2017 Revised estimated life Amount of amortization in 2017 7 years 5,181 36270/7 Req d 30-Jun-18 Book Value - Jan 1, 2017 Amortization expense - 2017 Book Value Jan 1, 2018 Amortization expense till June 2018 Book Value June 30, 2018 Cash received on sale Gain (loss) on sale 36,270 5,181 31,089 2,591 28,498 25,300 (3,198) -36270-5181 -5181*6/12 -28498-25300 Req e 30-Jun-18 Cash Accumulated Amortization-Patent Loss on sale of asset Patent 25,300 11,802 3,198 -4030+5181+2591 40,300