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View Full Version : What are the journal entries used related to patent?


carsh
Jan 24, 2009, 05:48 AM
:confused:
What are the journal entries used related to patent? And the computations used in getting it?
Thanks.. ;)

codyman144
Jan 24, 2009, 10:19 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, 03:10 PM
When you purchase a patent you will capitalize the cost.

Also a patent is depreciated

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

Also you need to check for impairment of the patent.

ashvineeami
Apr 16, 2012, 09:27 AM
Where I will entry patents in p and l a/c or balance sheets

pready
Apr 16, 2012, 10:47 AM
A patent is an intangible asset and will be on the balance sheet