1.Record the purchase of the patent on january 2,2021

Blossom Company purchases a patent for $1,53,200 cash on january 2,2021.Its legal life is 20 Years and its estimated useful life is 8 Years

1.Record the purchase of patent on january 2,2021

2.Record amortization expense for the year ended December 31,2021

Solutions

Expert Solution

Calculation of Amortization Expense

Amortization Expense = Cost of Patent / Estimated useful life

=$1,53,200 / 8

=$19,150

Record the purchase of the patent on January 2,2021

Date	Account Titles & Expalanation	Debit$	Credit$
02 - Jan -21	Patent A/C	1,53,200
	To Cash A/C		1,53,200
	( To record cash purchase of patent

Record amortization expense for the year ended December 31,2021

Date	Account Titles & Explanation	Debit$	Credit$
31 -Dec -21	Amortization Expense A/C	19,150
	To Accumulated amortization A/c		19,150
	( To record amortization expense)

Answer to the above question clearly shown in the explanation option

balaji rao answered 2 years ago

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