Question

Prepare the December 31 entry for Pina Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3,720.

Answer 1

Answer and Explanation:

The journal entry is as follows;

Amortization expense  $1,585 ($16,400 - $3,720) ÷ 4 years × 0.5

           Trademarks $1,585

(Being the amortization expense is recorded)

As we debit the amortization expense as it increased the expenses and at the same time we credited the trademarks as it decreased the assets