ae12-16 - The project is completed in 2010, and a...

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The project is completed in 2010, and a successful patent is obtained. The R & D costs to complete the project are $126,250. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2010 total $22,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2010. Account/Description Debit Credit Research and Development Expense 126,250 Cash, Accts. Payable, etc. 126,250 (To record research and development costs) Patents 22,000 Cash, Accts. Payable, etc. 22,000 (To record costs to obtain patent #472-1001- 84) Patent Amortization Expense 4,400 Patents 4,400 (To record one year's amortization expense) Account/Description Debit Credit Research and Development Expense 126,250 Cash, Accts. Payable, etc. 126,250 (To record research and development costs) Patents 22,000 Cash, Accts. Payable, etc. 22,000 (To record costs to obtain patent #472-1001-84) Patent Amortization Expense 4,400
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ae12-16 - The project is completed in 2010, and a...

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