$ 72,500 14,500 The intangible assets and goodwill reported by Pharoah Company at December 31, 2020, follow: Patent #1 Less: Accumulated amortization $ 58,000 Copyright #1 39,000 Less: Accumulated amortization Goodwill Total 23,400 15,600 205,000 $ 278,600 Patent #1 was acquired in January 2019 and has an estimated useful life of 10 years. Copyright #1 was acquired in January 2015 and also has an estimated useful life of 10 years. The following cash transactions may have affected intangible assets and goodwill during the year 2021: Jan. 2 June 30 Sept. 1 Oct. 1 Paid $20,000 of legal costs to successfully defend Patent #1 against infringement by another company. Developed a new product, incurring $170,000 in research costs and $50,400 in development costs, which were paid in cash. The development costs were directly related to Patent #2, which was granted for the product on July 1. Its estimated useful life is equal to its legal life of 20 years. Paid $11,000 to an Olympic athlete to appear in commercials advertising the company's products. The commercials will air in September. Acquired a second copyright for $15,600 cash. Copyright #2 has an estimated useful life of six years. The intangible assets and goodwill reported by Pharoah Company at December 31, 2020, follow: Patent #1 Less: Accumulated amortization Copyright #1 $ 72,500 14,500 $ 58,000 39,000 Less: Accumulated amortization Goodwill Total 23,400 15,600 205,000 $ 278,600 Patent #1 was acquired in January 2019 and has an estimated useful life of 10 years. Copyright #1 was acquired in January 2015 and also has an estimated useful life of 10 years. The following cash transactions may have affected intangible assets and goodwill during the year 2021: Jan. 2 June 30 Sept. 1 Oct. 1 Paid $20,000 of legal costs to successfully defend Patent #1 against infringement by another company. Developed a new product, incurring $170,000 in research costs and $50,400 in development costs, which were paid in cash. The development costs were directly related to Patent #2, which was granted for the product on July 1. Its estimated useful life is equal to its legal life of 20 years. Paid $11,000 to an Olympic athlete to appear in commercials advertising the company's products. The commercials will air in September. Acquired a second copyright for $15,600 cash. Copyright #2 has an estimated useful life of six years. Date Account Titles and Explanation Debit Credit (To record legal costs.) (To record research costs.) (To record development costs.) (To record advertising.) (To record copyright.) Prepare any adjusting journal entries required at December 31, 2021, the company's year end, and update the account balances. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Dec. 31 Debit Credit (To record amortization on patents.) Dec. 31 (To record amortization on copyrights.) PHAROAH COMPANY (Partial) Balance Sheet Assets