EXERCISE 12-1

Celine Dion Corporation purchases a patent from Salmon Company on January 1, 2014, for $54,000. The patent has a remaining legal life of 16 years. Celine Dion feels the patent will be useful for 10 years.

Prepare Celine Dion’s journal entries to record the purchase of the patent and 2014 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record purchase of patents)
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record amortization of patents)