Bridgeport Company discovered an error in its accounting records in 2024. Bridgeport acquired patents costing...
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Bridgeport Company discovered an error in its accounting records in 2024. Bridgeport acquired patents costing $855,000 on January 1 , 2022. The patents have been amortized on a straight-line basis over their 15 -year legal life. However, Bridgeport's accountant neglected to obtain an estimate of the patent's economic life, which was only five years. Bridgeport Company uses a calendar fiscalyear, is subject to a 30% tax rate and follows ASPE. Prepare the journal entries to correct the accounting error and record patent amortization for 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.)
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Bridgeport Company discovered an error in its accounting records in 2024. Bridgeport acquired patents costing $855,000 on January 1 , 2022. The patents have been amortized on a straight-line basis over their 15 -year legal life. However, Bridgeport's accountant neglected to obtain an estimate of the patent's economic life, which was only five years. Bridgeport Company uses a calendar fiscalyear, is subject to a 30% tax rate and follows ASPE. Prepare the journal entries to correct the accounting error and record patent amortization for 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) 