On July 1,Sterns Co

question 89

Essay

On July 1,Sterns Co.acquired patent rights for $36,000.The patent has a useful life of 6 years and a legal life of 15 years.Journalize the adjusting entry on December 31 to recognize the amortization.

$\begin{array}{|c|c|c|c|c|}\hline \text { Date } & \text { Description } & \begin{array}{c}\text { Post. } \\\text { Ref. }\end{array} & \text { Debit } & \text { Credit } \\\hline \\\hline \\\hline\end{array}$

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Definitions:

Public Policy

Principles and standards considered by the government to be beneficial for the community and used to guide legislative or regulatory actions.

Trade Secrets

Information, including formulas, practices, processes, designs, instruments, patterns, or compilations of information that is not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers.

Illegal Agreement

A contract or agreement that is void because it involves actions that are against the law.

Illegal Marijuana Manufacturing

The unauthorized cultivation or production of marijuana plants, which is prohibited under federal law and possibly under state laws, depending on the jurisdiction.