Blossom Limited organized late in 2019 and set up a single account for all intangible assets. The following summary shows the entries in 2020 (all debits) that have been recorded in Intangible Assets since then:

Jan. 2 Purchased patent (8-year life) $325,000

Mar. 31 Costs to search for new ways to apply patent that was purchased on Jan. 2 21,000

Apr. 1 Purchased goodwill (indefinite life) 300,000

July 1 Purchased franchise with 10-year life; expiration date July 1, 2030 245,000

1 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 33,000

Aug. 1 Payment for copyright (5-year life) 133,200

1 Purchased trademark (3-year life) 14,400

1 Purchased customer list (2-year life) 9,600 Sept.

1 Research costs 230,000 $1,311,200

QUESTIONS TO BE ANSWERED

- Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles.

- Make the journal entry as at December 31st, 2020 for any necessary amortization so that all balances are accurate as that date.