Business, 14.04.2020 17:34 lorielle

The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $144,000 balance in this account at the end of 2021 is as follows

Date Transaction Amount
February 3 State incorporation fees and legal costs related to organizing the corporation $ 9,500
March 1 Fire insurance premium for three-year period 8,500
March 15 Purchased a copyright 25,000
April 30 Research and development costs 45,000
June 15 Legal fees for filing a patent on a new product resulting from an R&D project 5,500
September 30 Legal fee for successful defense of patent developed above 17,000
October 13 Entered into a 10-year franchise agreement with franchisor 45,000
Various Advertising costs 21,000
Total $ 176,500

Required:
Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other types of assets, and expenses indicated by the transactions.

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The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made du...

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