Question

Prepare the December 31 entry for Riverbed Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3,320.

Answer 1

Debit : Amortization expense

Credit : Accumulated Amortization

Step-by-step explanation:

Hi the Cost of the trademark is missing on this question. However below i explain in steps how to solve this question.

Step 1

Amortization happens on a straight line basis as :

Amortization Expense = Cost - Residual Value ÷ Number of years of useful life

Step 2

Record the expense with a debit in amortization and a credit in accumulated amortization as :

Debit : Amortization expense

Credit : Accumulated Amortization