Accounting Examples
Accounting Examples - Amortization


Online Course
Accounting for Non-Accountants -
Accounting for Non-Accountants is a 20-hour strictly online accounting course that requires no textbook or live instructor. It is a self-paced accounting tutorial that can be taken 24/7 conveniently in your own home, office, or from any computer that has access to the Internet.  Click here to view more details


Amortization, like depreciation, is the process of deducting, over a set period of time, the costs incurred in the procurement of assets.  Whereas depreciation is used to expense out (over the useful life) the costs of  tangible assets such as buildings, furniture, and machines; amortization is used to recover the cost of intangible assets such as:

Going into Business Costs - start up expenditures, cost of incorporating, etc.

Lease for Business Property

Goodwill, patents, customer base, permits, etc.

Reforestation Costs - direct costs of planting or seeding

Pollution Control Facilities

When the intangible asset is originally purchased the cost should be debited to an asset account.  This cost is then "written off" or amortized, generally using the straight line method, over the legal useful life of the asset (see IRS Publication 535 Chapter 9 for amortization period guidelines).  The straight line method is simply dividing the initial cost of the asset by its useful life.  For example if a patent is purchased for $12,000 and amortized over 15 years (180 months) then the monthly write-off would be $66.67 (12,000/180).

General Journal

Page: 1


Account Titles/Explanation






Amortization Expense - Patents







Get ALL of the materials above for only $35.

Master Accounting Download Package - High-quality PDF files
Accounting explained in a clear and easy to understand way. Includes explanations for 31 accounting topics, 16 Accounting Exams (40 questions each), 52 Printable Crossword Puzzles, 175 Question Bookkeeping Test, Quick View Basic Accounting "Cheat Sheet", Accounting Dictionary and more. Click here to view more details

Managerial & Cost Accounting Exams  - covering 19 managerial accounting topics (a total of 520 questions). Answers included. A great tool for learning and reviewing!

Download Printable (PDF) - $15

Financial Accounting Exams - covering 16 financial accounting topics. Each authentic accounting exam contains 40 questions focused on each topic (a total of 640 questions). Answers included.

Download Printable (PDF) - $15
Popular books for Amortization

Monthly Interest Amortization Tables

Monthly Interest Amortization Tables

Loan amounts of $50 to $300,000. Interest rates of 2% to 25.75%. Terms up to 40 years.



Privacy Statement Site Map   Link to Us Contact Us

2002-11 Learning Link Finders, Inc. - All Rights Reserved - Modified on 01/05/11

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.
All trademarks and registered trademarks appearing on are the property of their respective owners.