(a) 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 at December 31, 2020, and record any necessary amortization so that all balances are appropriate as at that date. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

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Flint Corp., a public company incorporated on June 28, 2019, set up a single account for all of its intangible assets. The following summary discloses the debit entries that were recorded during 2019 and 2020 in that account: INTANGIBLE ASSETS-FLINT July 1, 2019 $44,000 Oct. 1 29,000 Dec 31 16,500 Feb. 15. 2020 82,800 8-year franchise; expiration date of June 30, 2027 Advance payment on office lease (2-year lease) Net loss for 2019 including incorporation fee $1,000; related legal fees of organizing $5,300; expenses of recruiting and training staff for start-up of new business, $4,000 Patent purchased (10-year life) Direct costs of acquiring a 5-year licensing agreement Goodwill purchased (indefinite life) Legal fee for successful defence of patent (see above) Costs of research department for year Royalties paid under licensing agreement (see above) Mar. 1 77,400 Apr. 1 312,400 June 1 12,815 Dec 31 75,000 31 2.775 The new business started up on July 2, 2019. No amortization was recorded for 2019 or 2020. The goodwill purchased on April 1, 2020, includes in-process development costs that meet the six development stage criteria, valued at $176,000. The company estimates that this amount will help it generate revenues over a 10-year period. Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Intangible Assets-Franchises 44,000 Prepaid Rent 29.000 Retained Earnings 16,500 Intangible Assets-Patents 82,800 Intangible Assets-Licences 77.400 Goodwill 136,400 Intangible Assets-Development Costs 176.000 Research and Development Expense 75.000 Royalty Expense 2,775 Intangible Assets 652,690 (To clear Intangible Assets account) Dec. 31, 2020 Retained Earnings 5.500 Amortization Expense 5.500 Accumulated Amortization - Franchises 11,000 (To correct for amortization on franchises) Dec. 31, 2020 Retained Earnings 3,625 Rent Expense 14.500 Prepaid Rent 18.125 (To correct for rent payments) Dec. 31, 2020 Amortization Expense 7,058 Accumulated Amortization - Patents 7,058 (To record amortization expense on patents) Dec. 31, 2020 Amortization Expense 12,942 Accumulated Amortization - Licences 12.942 (To record amortization expense on licences) Dec. 31, 2020 Amortization Expense 13,224 Accumulated Amortization - Development Costs 13,224 (To record amortization expense on development cost)