On January 2, 2021, Kerwin Company Purchased a Patent for $48,000.The

question 159

Essay

On January 2, 2021, Kerwin Company purchased a patent for $48,000.The patent has an estimated useful life of 25 years and a 20-year legal life.What entry would the company make at December 31, 2021, to record amortization expense on the patent?

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Definitions:

Cash Disbursements

The act of paying out cash for various purposes, including expenses, investments, and dividends.

Outstanding Checks

Checks that have been written and recorded in the payer's account but not yet cashed or processed by the recipient.

Adjusting Entries

Entries recorded in the journals at the close of an accounting period to distribute income and expenditures to the period they actually took place.

Bank Reconciliation

Bank reconciliation is the process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.