Question

Bright Designs Limited began operations in 20X5 and, at the end of its first year of operations, reported a balance of $ 1,203,000 in an account called “ intangibles.” Upon further investigation, it is discovered that the account had been debited throughout the year as follows:


Required:
1. Prepare a correcting entry that reallocates all amounts charged to intangibles to the appropriate accounts. State any assumptions made.
2. Calculate amortization expense on intangible assets for 20X5. Straight- line amortization, to the exact month of purchase, is used. All residual values are expected to bezero.


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  • CreatedFebruary 17, 2015
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