Question

At December 31, the unadjusted trial balance of H&R Tacks reports Software of $34,500 and and zero balances in Accumulated Amortization and Amortization Expense. Amortization for the period is estimated to be $6,900. Prepare the adjusting journal entry on December 31. Prepare the T-accounts for each account, enter the unadjusted balances, post the adjusting journal entry, and report the adjusted balance.

Answer 1

Answer:

Dr amortization expense  $6,900

Cr Accumulated amortization       $6,900

Explanation:

The adjusting journal on 31  December is to reflect the amortization charge of $6,900 in both accumulated amortization and amortization expense accounts.

Find attached t-accounts,note that amortization expense account would not have a closing balance as the amount of amortization is written to income statement