The Ripkin Corporation was organized and began to operate on January 1, 2014, to manufacture and sell children's clothes. During 2014, the following expenditures were recorded in the company's goodwill account by an inexperienced data-entry clerk:

Goodwill
2014
January 2	Corporate registration legal fees	$ 5,000
January 2	Underwriter's fee for the issuance of common stock	7,500
January 2	Discount on bond issue	40,000
January 2	Cost of a major advertising campaign to promote the company's name and merchandise	75,000
January 14	Cost of employee training program	25,000
January 14	Excess of purchase price over market value of Mannekin's net identifiable assets paid in acquiring Mannekin Corporation	150,000
January 14	Cost of a patent purchased from a competitor with an expected life of ten years	25,000
July 1	Operating loss for first six months	45,000
July 1	Legal fees for the successful defense of patent acquired Jan. 14	10,000
December 20	Cost of Christmas party	12,000
	Total	$394,500

Required:

a. Prepare an entry as of December 31, 2014, to reclassify the items from the goodwill account to the appropriate accounts.

b. Prepare the adjusting entry or entries required to amortize the intangible assets using the straight-line method. Calculate amortization to the nearest month.