Blossom Company purchases a patent for $352,000 on January 2, 2019. Its estimate

Question

Blossom Company purchases a patent for $352,000 on January 2, 2019. Its estimated useful life is 10 years. Prepare the journal entry to record amortization expense for the first year. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit Show how this patent is reported on the balance sheet at the end of the first year. Blossom Company Balance Sheet (Partial)

Explanation / Answer

Journal entry:

2.

Intangible Assets:

Patent(352,000-35,200)=$316,800

Account titles debit credit Amortisation expense-patent(352,000/10) $35,200 Patent $35,200

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