Question

Problem 10-4 Intangibles [LO10-1, 10-8] The Horstmeyer Corporation commenced operations early in 2018. A number of expenditures were made during 2018 that were debited to one account called Intangible asset. A recap of the $180,500 balance in this account at the end of 2018 is as follows Date Transaction 2/3/18 State incorporation fees and legal costs related to organising the corporation 3/1/18 Fire Insurance premium for three year period 3/15/18 Purchased a copyright 4730/18 Research and development costs 6/15/18 Legal fees for filinga patent on a new product resulting from an R&D project 9/30/18 Legal fee for successful defense of patent developed above 10/13/18 Entered into a le year franchise agreement with franchison Various Advertising costs Total Amount $ 6, eee 5,000 27.ee 47,00 6,589 19.000 47.gea 23,99 $180, 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 (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the entry to reclassify various expenditures incorrectly charged to the intangible asset account Note: Enter debits before credit Transaction General Joumal S EONDIC ARRERA WAS Record entry Clear entry View general Journal

Answer 1

Toangta Geneocal Jouonal CadPt ($) oogarf zalfon Cost expense AlC DO poepadd insuoance AlC DO Coprofght Ak DO Rescaoch e done lopment expense AIC DS CG,500+ 19,000) 6O00 5000 27,000 C00'tn 25,500 Palent AlC Do Foanchise AIC DO 0,000 Advestising capLO Se Alc D8 23,000 TO Intaugfble ALset Ac 180300