Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by the Coker Company in 2001:

1. Coker developed a new manufacturing process, incurring research and development costs of $153,000. The company also purchased a patent for $39,100. In early January Coker capitalized $192,100 as the cost of the patents. Patent amortization expense of $9,605 was recorded based on a 20-year useful life.

2. On July 1, 2001, Coker purchased a small company and as a result acquired goodwill of $76,000. Coker recorded a half-year’s amortization in 2001 based on a 50-year life

($760 amortization).

Instructions Prepare all journal entries necessary to correct any errors made during 2001. Assume the books have not yet been closed for 2001.