How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Doug Millington Your Own Question
Doug Millington
Doug Millington, Certified Public Accountant (CPA)
Category: Financial Software
Satisfied Customers: 268
Experience:  Bachelor of Science Cornell University 1979 - CPA since 1981 - Certified QuickBooks ProAdvisor - 30+ years experience.
56399112
Type Your Financial Software Question Here...
Doug Millington is online now
A new question is answered every 9 seconds

how do i record intangible assets in quickbooks

Resolved Question:

how do i record intangible assets in quickbooks?
Submitted: 6 years ago.
Category: Financial Software
Expert:  Doug Millington replied 6 years ago.

Doug Millington :

If you have a question about accounting, bookkeeping, QuickBooks or Peachtree I have the answer.

Doug Millington :

OK - intangible assets like copyrights, patents, goodwill, trade names etc should be shown on the Balance Sheet as "Other Assets" type of account and be recorded at cost

Doug Millington :

If you did not buy them but developed them will not appear on the balance sheet

Doug Millington :

Also the amortization associated with any intangible asset will also be shown as an "Other Assets" type of account but like accumunlated depreciation be a contra account and have a credit balance to offset the cost of the intnagible asset

Doug Millington :

Let me know if you have any questions or would like to discuss further - I'm here to help.

Customer:

does the worth of the asset come into play, just like tangible assets? or do you put on your balance sheet ONLY the cost of say, developing technology for a product?

Doug Millington :

Cost only - NOT FAIR MARKET VALUE

Customer:

OK- so let me get this straight. If i had technology developed and i spent 3M developing the technology, and it was owners investment; what would i use as the payee and account for this? Is it bad to show that all of the assets coming from owner equity ? thanks so much!

Doug Millington :

Research and developement costs are current period expenses and not capitalized. If however you go out and buy the rights to a patent then that is an intangible asset and is recorded at cost on the books. So in your example of spending 3 million developing technology all of this would be a current period expense and not an asset.

Doug Millington :

I know it sounds somewhat counter intuitive but that is the correct current treatmentof internally developed intangible assets.

Customer:

ok thanks! that answers my question of assets coming from owner equity!

Doug Millington and other Financial Software Specialists are ready to help you