journal entry

Required information An intangible asset is recorded at the cost incurred to purchase it. The cost of an intangible asset with a definite useful life is allocated to expense using the straight-line method and is called amortization. Intangible assets with an indefinite useful life are not amortized- they are annually tested for impairment. Intangible assets include patents, copyrights, leaseholds, goodwill, and trademarks. On January 5, Barnaby, Inc. purchased a patent costing $100,000 with a useful lMe of 20 years. The company records its adjusting entries at the end of each year on December 31 Complete the necessary adjusting entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet