Chapter 3
Long-Term Assets
129
AP-15B (
6
)
Gamma Inc. has a December year-end. Gamma purchased a copyright from Delta Corporation
for $60,000 cash on March 1, 2016. The copyright allows the owners’ rights for five years.
Gamma uses the straight-line method to amortize intangible assets.
Required
a) Prepare the journal entry for the purchase of the copyright and the entry required to
record amortization for the first year on December 31, 2016.
Date
Account Title and Explanation
Debit
Credit
b) Prepare the journal entry to record amortization for the second year on December 31,
2017.
Date
Account Title and Explanation
Debit
Credit
