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llanier08
Jan 13, 2007, 04:09 PM
Dr. Robotniks Inc spent $60,000 in attorney fees while developing the trade name of its new product, The Mean Bean Machine. Prepare the journal entries to record the $60,000 expenditure and the first years amortization, using an 8 year life?

I would say
Attorneys fees 60,000
Cash 60,000

Amortization expense 7500
Accumulated amortization 7500

CaptainForest
Jan 13, 2007, 08:32 PM
You need to capitalize the attorney fees.

If that is what you meant, then I agree with your JE's.