Business & Finance Homework Help| Business & Finance homework help
1. For the total intangible assets, debit Intangible Asset account and credit cash are required.
2. Each type of intangible assets should be assigned a separate account.
3. You can have a Debit Intangible asset Account or a Credit Specific Intangible Property Account with the appropriate amount for each type.
4. You can create sub-accounts for multiple assets (e.g. Copyright or Patent).
An example would be $100,000 worth of intangible assets. This could include patents and copyrights, each costing $50,000 and $50,000. They then need to debit or credit the Intangible Assets and Cash accounts ($100,000), respectively. Then they would create two separate accounts – Copyrights & Patents – which they would debit this same time ($50k each) while also crediting back their respective sub-accounts with the same amount.
By taking these steps it helps ensure that all relevant information regarding different types of intangibles is captured in a more organized fashion – allowing them to properly track any changes over time as well as perform better analysis & reporting when needed.
A well-structured accounting system can help you keep your financial records under control and ensure compliance with all legal requirements.; which is why it’s important to take necessary steps towards setting up such system when dealing with various forms of intangibles.