Question

In: Accounting

Milano Gallery purchases the copyright on an oil painting for $390,000 on January 1, 2017. The...

Milano Gallery purchases the copyright on an oil painting for $390,000 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.

Record the year-end adjusting entry for the amortization expense of the copyright.

No Date General Journal Debit Credit
1 Jan 01 Copyright 390,000
Cash 390,000

I just need to know how to journalize the last transaction.

the adjusting entry is'nt $39,000 or $20,526, those were both wrong when i tried them.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Gallery purchases the copyright on a painting for $418,000 on January 1. The copyright is good...
Gallery purchases the copyright on a painting for $418,000 on January 1. The copyright is good for 10 more years. The company plans to sell prints for 11 years.    Prepare entries to record the purchase of the copyright on January 1 and its annual amortization on December 31.
On January 1, 2017, Sunland Company purchased a copyright for $2292000, having an estimated useful life...
On January 1, 2017, Sunland Company purchased a copyright for $2292000, having an estimated useful life of 16 years. In January 2021, Sunland paid $339000 for legal fees in a successful defense of the copyright. Copyright amortization expense for the year ended December 31, 2021, should be
On January 1, a company issues bonds dated January 1 with a par value of $390,000....
On January 1, a company issues bonds dated January 1 with a par value of $390,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $405,830. The journal entry to record the first interest payment using the effective interest method of amortization is: (Rounded to the nearest dollar.) a. Debit Bond Interest Expense 19,133.00; credit Premium...
On January 1, a company issues bonds dated January 1 with a par value of $390,000....
On January 1, a company issues bonds dated January 1 with a par value of $390,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $405,830. The journal entry to record the first interest payment using straight-line amortization is: (Rounded to the nearest dollar.)
On January 1, a company issues bonds dated January 1 with a par value of $390,000....
On January 1, a company issues bonds dated January 1 with a par value of $390,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $405,830. The journal entry to record the first interest payment using straight-line amortization is: (Rounded to the nearest dollar.)
Cheyenne Company purchases an oil tanker depot on January 1, 2020, at a cost of $648,500....
Cheyenne Company purchases an oil tanker depot on January 1, 2020, at a cost of $648,500. Cheyenne expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $79,920 to dismantle the depot and remove the tanks at the end of the depot’s useful life. Prepare the journal entries to record the depot and the asset retirement obligation for...
1. Consider an investor who, on January 1, 2017, purchases a TIPS bond with an original...
1. Consider an investor who, on January 1, 2017, purchases a TIPS bond with an original principal of $100,000, a 4.50 percent annual (or 2.25 percent semiannual) coupon rate, and 5 years to maturity. (LG 6-2) If the semiannual inflation rate during the first six months is 1.25 percent, calculate the principal amount used to determine the first coupon payment and the first coupon payment (paid on June 30, 2017). From your answer to part a, calculate the inflation-adjusted principal...
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of...
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of $134,400. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2021, during its fifth year of service.    Prepare entries to record the partial year’s depreciation on July 1, 2021, and to record the disposal under the following separate assumptions: (1) The machine is sold for $67,200 cash....
Star Company purchases a factory machine at a cost of $18,000 on January 1, 2017. Star...
Star Company purchases a factory machine at a cost of $18,000 on January 1, 2017. Star expects its useful life of 4 years. Salvage value: 828 Double declining rate: 50% Instructions Prepare depreciation expense schedule by using declining-balance method.
On January 1, 2017, Marigold Company makes the two following acquisitions. 1. Purchases land having a...
On January 1, 2017, Marigold Company makes the two following acquisitions. 1. Purchases land having a fair value of $240,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $404,414. 2. Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $390,000 (interest payable annually on January 1). The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Marigold Company...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT