New Tech Company Acquired a Patent on January 1, 2017

question 157

Essay

New Tech Company acquired a patent on January 1, 2017 for $35,000. The residual value of the patent is $0. The patent is expected to benefit New Tech Company for 5 years. After using the patent one year, it was discovered that the patent would only be useful for 3 more years.
Required:
1. Prepare the journal entry to record the acquisition of the patent. Omit explanations.
2. Prepare the adjusting journal entry at December 31, 2017. Omit explanation.
3. Prepare the adjusting journal entry at December 31, 2018. Omit explanation.

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Definitions:

Television Programs

Broadcast or streamed content produced for entertainment, education, or information, accessible via televisions and digital devices.

Neighborhood Physical Disorder

A problem in distressed communities that includes both physical deterioration (garbage on the streets, rundown buildings, etc.) and chaotic activity (crowding, high noise levels, etc.).

Social Disorganization

The breakdown of social structures leading to decreased community cohesion and increased crime or delinquency.

Overcrowded

Being filled beyond capacity, often leading to a situation of excessive crowding or congestion.