(Correct Intangible Asset Account) As the recently appointed auditor for William J. Bryan Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2003, are prepared. The controller for William J. Bryan Corporation mentions that only one account is kept for Intangible Assets. The account is shown below.

Instructions Prepare the entry or entries necessary to correct this account. Assume that the patent has a useful life of 10 years.

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Intangible Assets Debit Credit Balance Jan. 4 Jan. 5 Research and development costs 940,000 940,000 Legal costs to obtain patent 75,000 1,015,000 Jan. 31 Payment of 7 months' rent on property leased by Bryan 91,000 1,106,000 Feb. 11 Premium on common stock 250,000 856,000 March 31 Unamortized bond discount on bonds due March 31, 2023 84,000 940,000 April 30 Promotional expenses related to start-up of business 207,000 1,147,000 June 30 Operating losses for first 6 months 241,000 1,388,000