Oriole Company discovered an error in its accounting records in 2025. Oriole had purchased a copyright for $52,200 on January 1. The copyright has been amortized on a straight-line basis over its 20-year legal life. However, Oriole'saccountant neglected to obtain an estimate of the copyright's economic life, which was only fifteen years. Oriole Company used a calendar fiscal year and was subject to a 20% tax rate and follows ASPE. Prepare the journal entries to correct theaccounting error and to record copyright amortization for 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for theamounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Retained Earnings Future income Tax Asset Accumulated Amortization - Patents (To record correction oferror) Amortization Expense Accumulated Amortization - Patents (To record amortization expense) Credit Oriole Company discovered an error in its accounting records in 2025. Oriole had purchased a copyright for $52,200 on January 1,2022. The copyright has been amortized on a straight-line basis over its 20-year legal life. However, Oriole's accountant neglected toobtain an estimate of the copyright's economic life, which was only fifteen years. Oriole Company used a calendar fiscal year and wassubject to a 20% tax rate and follows ASPE. Prepare the journal entries to correct the accounting error and to record copyrightamortization for 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to Odecimal places, e.g. 5,275.)Account Titles and ExplanationRetained EarningsFuture Income Tax AssetAccumulated Amortization - Patents(To record correction of error)Amortization ExpenseAccumulated Amortization - Patents(To record amortization expense)DebitCredit

Journal entry:The monetary transaction of business is recorded in the books of accounts called the…

Oriole Company discovered an error in its accounting records in 2025. Oriole had purchased a copyright for $52,200 on January 1. 2022. The copyright has been amortized on a straight-line basis over its 20-year legal life. However, Oriole's accountant neglected to obtain an estimate of the copyright's economic life, which was only fifteen years. Oriole Company used a calendar fiscal year and was subject to a 20% tax rate and follows ASPE. Prepare the journal entries to correct the accounting error and to record copyright amortization for 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Retained Earnings Future Income Tax Asset Accumulated Amortization - Patents (To record correction of error) Amortization Expense Debit Credit

Oriole Company discovered an error in its accounting records in 2025. Oriole had purchased a copyright for $52,200 on January 1. 2022. The copyright has been amortized on a straight-line basis over its 20-year legal life. However, Oriole's accountant neglected to obtain an estimate of the copyright's economic life, which was only fifteen years. Oriole Company used a calendar fiscal year and was subject to a 20% tax rate and follows ASPE. Prepare the journal entries to correct the accounting error and to record copyright amortization for 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Retained Earnings Future Income Tax Asset Accumulated Amortization - Patents (To record correction of error) Amortization Expense Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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