On October 1,2017,Mulcahy,Inc

question 128

Essay

On October 1,2017,Mulcahy,Inc.purchased a patent for $100,000 cash.Although the patent gives legal protection for 20 years,it is expected to be used for only eight years.Journalize the amortization expense for 2017.Assume straight-line amortization.

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Definitions:

Needs And Wants

Basic requirements for survival (needs) contrasted with desires that can be fulfilled through purchasing goods and services (wants).

Managerial Accounting

Managerial accounting involves the processes of identifying, analyzing, recording, and presenting financial information that can be used internally by managers for planning, decision-making, and operational control.

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions relating to a business, following standardized guidelines.

Raw Materials Inventory

The total cost of all components that are intended to be used in the production of a product but have not yet been used.