Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were recorded in a questionable way by Hahn Company in the year ended August 31, 2024: 

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 totaled $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 2024.