accounting entry of trademark right for financing purchase
Debit: intangible assets (present value) (unpaid principal)
Unconfirmed financing expenses (backward extrusion) (unpaid interest)
Loan: long-term payables (annual payment × years)
Debit: long-term payables
Loan: bank deposit
.
intangible assets refer to identifiable non-monetary assets that have no physical form and are owned or controlled by enterprises.
Compared with other assets, intangible assets have three main characteristics:
1. They have no physical form
2. They are recognizable
They can be separated or divided from enterprises and used for sale, transfer, licensing, lease or exchange alone or together with related contracts, assets or liabilities. Or from contractual rights or other legal rights.
3. Non-monetary long-term assets
Intangible assets are non-monetary assets and can bring economic benefits to enterprises in multiple accounting periods. The service life of intangible assets is more than one year, and its value will be gradually amortized during each benefit period.
what are the financial expenses?
financial expenses refer to the expenses incurred by an enterprise to raise funds needed for production and operation. Specific items include: net interest expenditure (the difference between interest expenditure and interest income), net exchange loss (the difference between exchange loss and exchange income), handling fees of financial institutions and other expenses incurred in raising production and operation funds.
what are the long-term payables?
Long-term accounts payable refer to various other long-term accounts payable except long-term loans and bonds payable by enterprises, including rental fees payable for financing leased fixed assets and accounts payable for purchasing fixed assets by installment.