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 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 . T he jour nal entry to record license fees is s how n b elow: Lice nse Fees a/c XXX Cas h a/c / Ba nk a/c XXX (License Fees Paid for t he Period) Lice nse Fees Expense is a Temporary Account w hich is show n in Income Statement at t he e nd of t he accou nting period. If t he lice nse fees is accrued i.e., lice nse is ob tai ned b ut not paid in cas h at t h e end of t h e accounting period, so it is accrued for t he period. I n suc h a situatio n,