Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight- line basis since 2020, when it was acquired at a cost of $20.7 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2024. Required: Prepare the year-end journal entry for patent amortization in 2024. No amortization was recorded during the year Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.5).

Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight- line basis since 2020, when it was acquired at a cost of $20.7 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2024. Required: Prepare the year-end journal entry for patent amortization in 2024. No amortization was recorded during the year Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.5).

Name: Journal entry worksheetRecord amortization expense.Note: Enter debits
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Description: Journal entry worksheetRecord amortization expense.Note: Enter debits before credits.Event1Record entryGeneral JournalClear entryDebitCreditView general journal Van Frank Telecommunications has a patent on a cellular transmission process. The compan

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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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

Journal entry worksheet
Record amortization expense.
Note: Enter debits before credits.
Event
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal

Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-
line basis since 2020, when it was acquired at a cost of $20.7 million at the beginning of that year. Due to rapid technological
advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the
nine-year life being used to amortize its cost. The decision was made at the beginning of 2024.
Required:
Prepare the year-end journal entry for patent amortization in 2024. No amortization was recorded during the year
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer
in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.5).

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