Saturday, June 9, 2012

Purchase of Intangible Assets Journal Entry

Use the following chart to help create journal entries for the purchase of intangible assets:



Transaction for journal entry
Account Title
Debit
Credit
Recording purchase of patent
Patent
Cash
XXX

XXX
Recording Purchase of Copyright
Copyright
Cash
XXX

XXX
Recording Purchase of Franchise
Franchise
Cash
XXX

XXX
Recording Purchase of Trademark
Trademark
Cash
XXX

XXX



These journal entries will make sure that the accounting ledger is up to date when intangible assets are purchased by a company.

1 comment:

Quebna said...

i have been paying brand fees to our shareholder and withholding tax thereof. my shareholders have now changed and the new shareholders paid brand fees on my company's behalf as a way of injecting cash/capital into the business. how do i account for this transaction

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