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-   -   Pete paid the city 1500 for a three year license to operate a business. (https://www.askmehelpdesk.com/showthread.php?t=535503)

  • Dec 17, 2010, 09:06 AM
    confused0507
    Pete paid the city 1500 for a three year license to operate a business.
    Determine amount of depreciation or other expense to be recorded
  • Dec 17, 2010, 09:13 AM
    Just Looking

    A license that is valid for 3 years is set up as a Prepaid, and written off equally over the three years to Taxes and Licenses Expense.
  • Dec 17, 2010, 09:15 AM
    confused0507
    How do I show this in my work. Can you show the formula?
  • Dec 17, 2010, 09:28 AM
    Just Looking

    Have you learned about journal entries? Do you understand debits and credits? You would also write it off on a monthly basis at 1500/36.

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