When an enterprise needs to purchase trademark rights due to insufficient funds, it will choose financing to purchase. Trademark rights purchased with financing are generally included in the accounting of intangible assets. What are the specific accounting entries?

Accounting entries for financing the purchase of trademark rights

Debit: intangible assets (present value) (unpaid principal)

Unrecognized financing expenses (reverse (squeezed) (unpaid interest)

Loan: long-term payable (annual payment × number of years)

Debit: long-term payable

Loan: bank Deposits

Debit: Financial expenses

Credit: Unrecognized financing expenses

What are intangible assets?

Intangible assets refer to identifiable non-monetary assets that have no physical form. Intangible assets can be divided into broad and narrow senses. Intangible assets in a broad sense include financial assets, long-term equity investments, patent rights, trademark rights, etc., because they do not have physical entities, but are expressed as certain legal rights or technologies. However, in accounting, intangible assets are usually understood in a narrow sense, that is, patent rights, trademark rights, etc. are called intangible assets.

What are long-term payables?

Long-term payables refer to various long-term payables other than long-term borrowings and bonds payable by the enterprise, including lease fees payable for fixed assets leased by financing, and payables for fixed assets purchased in installments. Payments etc.

What are the financial charges?

Financial expenses refer to the expenses incurred by an enterprise to raise funds required for production and operations.

Includes interest expenses (minus interest income), exchange gains and losses incurred during the production and operation period of the enterprise (some enterprises, such as commodity circulation enterprises and insurance enterprises, conduct separate accounting and are not included in financial expenses), financial institution handling fees , cash discounts incurred by the enterprise or cash discounts received, etc. However, the interest expenses incurred during the preparation period of the enterprise should be included in the start-up expenses; the borrowing costs incurred for the acquisition, construction or production of assets that meet the capitalization conditions should be capitalized, and should be recorded in the "construction in progress", "manufacturing expenses" and other accounts. accounting.