Mirabella Manufacturing spent several years developing a process for producing widgets. Its lawyer suggested patenting the process. The company obtained the patent on January 1, 2020. The company paid $130,000 to the lawyer, $21,000 to the government for the patent and $7,000 in additional fees. Required a) Prepare the journal entry to record the full cost of the patent.
Mirabella Manufacturing spent several years developing a process for producing widgets. Its lawyer suggested patenting the process. The company obtained the patent on January 1, 2020. The company paid $130,000 to the lawyer, $21,000 to the government for the patent and $7,000 in additional fees. Required a) Prepare the journal entry to record the full cost of the patent.
Chapter1: Financial Statements And Business Decisions
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Mirabella Manufacturing spent several years developing a process for
producing widgets. Its lawyer suggested patenting the process. The
company obtained the patent on January 1, 2020. The company paid
$130,000 to the lawyer, $21,000 to the government for the patent and $7,000
in additional fees.
Required
a) Prepare the journal entry to record the full cost of the patent.
Do not enter dollar signs or commas in the input boxes.
Date
Account Title and Explanation
Debit
Credit
Jan
1
To record the total relevant patent fees
b) The patent has an estimated life of 20 years. Prepare the journal entry to
record amortization for one year on December 31, 2020.
Round your answers to the nearest whole number.
Date
Account Title and Explanation
Debit
Credit
Dec
31
To record amortization for the year
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