Chapter 3
Long-Term Assets
102
AP-9A (
6
)
Feggins Company purchased a patent from Marquette Limited for $200,000 on January 1,
2016. The patent has a remaining life of six years.
Required
a) Prepare the journal entry to record the purchase.
Date
Account Title and Explanation
Debit
Credit
b) Prepare the journal entry to record amortization for one year on December 31, 2016.
The company does not use the half-year rule. Assume the straight-line method of
depreciation is used.
Date
Account Title and Explanation
Debit
Credit
