Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were recorded

Question:

Due to rapid employee turnover in the accounting department, the following transactions involving were recorded in a questionable way by Hahn Company in the year ended August 31, 2017:
1. Hahn developed an electronic monitoring device for running shoes. It incurred research costs of $70,000 and development costs of $45,000. It recorded all of these costs in the Patent account.
2. The company registered the patent for the monitoring device developed in transaction 1. Legal fees and registration costs totalled $21,000. These costs were recorded in the Professional Fees Expense account.
3. The company recorded $5,750 of annual amortization on the patent over its legal life of 20 years [($70,000 + $45,000 = $115,000) ÷ 20 years]. The patent's expected economic life is five years. Assume that for amortization purposes, all costs occurred at the beginning of the year.
Instructions
Assuming Hahn reports under ASPE, prepare the journal entries that are needed to correct the errors made during 2017.
Taking It Further
The majority of the reported on a have been purchased as opposed to being internally generated. Why? What happens to the cost of an internally generated intangible asset if it is not recorded as an asset?
Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...