Accountıng Iı Deneme Sınavı Sorusu #1043405

Anadolu Co. paid 2,000,000 TL for a 10-year franchise that will expire on December 31, 2029. Make the journal entries for the purchasing of the franchise and the adjusting entry for the first year.


Jan. 1, 2019

  • Debit: Franchises & Licenses - 2,000,000
  • Credit: Cash - 2,000,000

Dec. 31, 2019

  • Debit: Amortization Expense - 200,000
  • Credit: Franchises & Licenses - 200,000

Jan. 1, 2019

  • Debit: Franchises & Licenses - 2,000,000
  • Credit: Cash - 2,000,000

Dec. 31, 2019

  • Debit: Franchises & Licenses - 200,000
  • Credit: Amortization Expense - 200,000

Jan. 1, 2019

  • Debit: Cash - 2,000,000
  • Credir: Franchises & Licenses - 2,000,000

Dec. 31, 2019

  • Debit: Amortization Expense - 200,000
  • Credit: Franchises & Licenses - 200,000

Jan. 1, 2019

  • Debit: Cash - 2,000,000
  • Credir: Franchises & Licenses - 2,000,000

Dec. 31, 2019

  • Debit: Franchises & Licenses - 200,000
  • Credit: Amortization Expense - 200,000

Jan. 1, 2019

  • Debit: Cash - 2,000,000
  • Credir: Goodwill - 2,000,000

Dec. 31, 2019

  • Debit: Amortization Expense - 200,000
  • Credit: Goodwill - 200,000

Yanıt Açıklaması:

Jan. 1, 2019

  • Debit: Franchises & Licenses - 2,000,000
  • Credit: Cash - 2,000,000

Dec. 31, 2019

  • Debit: Amortization Expense - 200,000
  • Credit: Franchises & Licenses - 200,000

The correct answer is A.

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