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

1. Baird developed a new manufacturing process, incurring research and development costs of $85,000. The company also purchased a patent for $37,400. In early January Baird capitalized $122,400 as the cost of the patents. Patent amortization expense of

$6,120 was recorded based on a 20-year useful life.

2. On July 1, 2001, Baird purchased a small company and as a result acquired goodwill of $60,000. Baird recorded a half-year’s amortization in 2001, based on a 50-year life

($600 amortization).

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