Final answer:
The journal entries for amortization and depreciation are similar but differ based on the nature of the assets being amortized. Amortization is for intangible assets, while depreciation is for tangible assets.
Step-by-step explanation:
The journal entries for amortization are similar to those for depreciation, but there are some differences based on the nature of the assets being amortized.
Amortization is the process of allocating the cost of intangible assets over their useful life. Examples of intangible assets include patents, copyrights, and trademarks. Amortization expense is reported on the income statement.
On the other hand, depreciation is the process of allocating the cost of tangible assets over their useful life. Examples of tangible assets include buildings, machinery, and vehicles. Depreciation expense is also reported on the income statement.