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    carsh's Avatar
    carsh Posts: 2, Reputation: 1
    New Member
     
    #1

    Jan 24, 2009, 05:48 AM
    What are the journal entries used related to patent?
    :confused:
    What are the journal entries used related to patent? And the computations used in getting it?
    Thanks.. ;)
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
    Senior Member
     
    #2

    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's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    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's Avatar
    ashvineeami Posts: 1, Reputation: 1
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    #4

    Apr 16, 2012, 09:27 AM
    Where I will entry patents in p and l a/c or balance sheets
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #5

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

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