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carsh
Jan 24, 2009, 04:48 AM
:confused:
what are the journal entries used related to patent? and the computations used in getting it??
thanks..;)
codyman144
Jan 24, 2009, 09:19 PM
You paid something for the patent right? So you will need to credit cash...

The patent itself is an asset right? Hmmm maybe a debt here...

Is this a homework question if so please see the big red note at the top of the accounting board!
pready
Jan 26, 2009, 02:10 PM
When you purchase a patent you will capitalize the cost.

Also a patent is depreciated

Any legal costs to successfuly defend the patent are capitalized as well.

Also you need to check for impairment of the patent.