(Recording and Amortization of Intangibles) Rolanda Marshall Company, organized in 2003, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2004.

Instructions Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2004, recording any necessary amortization and reflecting all balances accurately as of that date (straight-line amortization).

Transcribed Image Text:

1/2/04 4/1/04 Purchased patent (8-year life) Purchased goodwill (indefinite life) 7/1/04 8/1/04 Payment of copyright (5-year life) 9/1/04 Purchased franchise with 10-year life; expiration date 7/1/14 Research and development costs $ 350,000 360,000 450,000 156,000 215,000 $1,531,000