notes4chpt12acct310 - the Power Point presentation, it says...

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When an intangible asset is amortized the amortization expense account is debited and the asset account is credited. If, however, you are referring to the purchase of a patent (such as in E12-16) then you can use either cash or accounts payable in the journal entry. For E12-16 C: All parts are continuous right? So in part C, does that mean that we add onto the Patent from Qb? What I used is $24,000(b) +$47,200(c) -$4,800 (Patent Amortized in 2010) =$66,400 of Patent in 2011. ....then the new useful life would be 8 years? I just want to make sure I'm on the right track. .... What is the difference of recording expenses as incurred, and simply  expensing an item? For example, in the lecture notes it says "Costs incurred to  create internally-created intangibles are generally expensed as incurred." In 
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Unformatted text preview: the Power Point presentation, it says the cost of developing a trademark is "expensed". I'm not sure if I'm over thinking this, but I am not quite sure if I'm answering the homework problems for E12-1 correctly. Also, is it right to say that intangible items will go on the Income Statement, and expenses will go on the Balance Sheet? "Recording expenses as incurred" means that a journal entry is done at the time that the event takes place to record the cost as an expense. It appears that you are over thinking this. All of the examples that you gave of the different types of wording mean the same - the cost is shown as an expense. Intangibles are assets and therefore are shown on the balance sheet. Revenues and expenses are shown on the income statement....
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This note was uploaded on 07/14/2011 for the course ACCT 321 taught by Professor Collins during the Spring '10 term at University of Maryland Baltimore.

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