A) Janes Company provided the following information on intangible assets:

A patent was purchased from the Lou Company for $1,150,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $440,000 when Lou sold it to Janes.

During 2021, a franchise was purchased from the Rink Company for $590,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase.

Janes incurred research and development costs in 2021 as follows:

Materials and supplies 149K

Personnel 189K

Indirect Costs 69K

Total 407K

Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years.

Required:

1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information.

2. schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet.

Record the purchase of a patent.

Record amortization on the patent.

Record amortization on the patent.

Record the purchase of a franchise.

Record amortization of franchise.

Record research and development expenses.

Record amortization on the patent after change in useful life.

And Partial Balance Sheet

B) Consider each of the transactions below. All of the expenditures were made in cash.

The Edison Company spent $28,000 during the year for experimental purposes in connection with the development of a new product.

In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $10,000.

In March, the Cleanway Laundromat bought equipment. Cleanway paid $22,000 down and signed a noninterest-bearing note requiring the payment of $26,000 in nine months. The cash price for this equipment was $41,000.

On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $44,000.

The Mayer Company, plaintiff, paid $28,000 in legal fees in November, in connection with a successful infringement suit on its patent.

The Johnson Company traded its old equipment for new equipment. The new equipment has a fair value of $14,800. The old equipment had an original cost of $15,400 and a book value of $7,800 at the time of the trade. Johnson also paid cash of $11,200 as part of the trade. The exchange has commercial substance.

Required:

Prepare journal entries to record each of the above transactions. Should be 6 total.