Journal Entry For License Fees
T h e fees paid to start a new b usi ness or fees paid to get copyrig h t rig h ts for a product, service, content, etc. A License Fees (L F ) is an Expense if it is paid wit hi n one year accounting period, ot herwise it would b e co nsidered as an Intangi b le Asset a nd recognized on Bala nce S heet . Examples include annual business fee paid to operate the business in the specific region of a country, a proprietor paid an amount of money to local government to open or operate the Mobile Phones B usiness in local region of the country, etc. T he jour nal entry to record license fees is s how n b elow: Lice nse Fees a/c XXX ...