Intangible Long-Term Assets

1. Using the straight-line method, calculate the amortization of the patent, copyright, and Franchise.

2. Prepare general journal entries to record the end-of-year amortizations. If an amount box does not require an entry, leave it blank.

Track Town Co. had the following transactions involving intangible assets:

Jan. 1	Purchased a patent for leather soles for $10,000 and estimated its useful life to be 10 years.
Apr. 1	Purchased a copyright for a design for $15,000 with a life left on the copyright of 25 years. The estimated remaining (economic) life of the copyright is five years.
July 1	Signed a 5-year franchise agreement and opened a Starting Line high tech running shoe store. Paid $50,000 to the franchisor.

Using the straight-line method, calculate the amortization of the patent, copyright, and Franchise.

a. Patent	$
b. Copyright	$
c. Franchise	$
	$

General Journal 2. Prepare general journal entries to record the end-of-year amortizations. If an amount box does not require an entry, leave it blank Page: 1 ACCOUNT TITLE DOC. POST NO. REF. DATE DEBIT CREDIT 1 20- Dec. 31 2 2 Patents 4 Dec. 31 Copyrights 6 7 Dec. 31 Y Franchise