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Amortization of Intangibles

On January $1,$ Boulder Investments Inc. acquired a franchise to operate a Burger Doodle restaurant. Boulder paid $$161,800$ for a $10-$year franchise and incurred organization costs of $$12,000.$

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$1.$ Prepare the journal entry to record the cash payment for the franchise fee and the organization costs. If an amount box does not require an entry, leave it blank.

Jan. $1$

Jan. $1$

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$2.$ Prepare the journal entry to record the annual amortization expense at the end of the first year. If an amount box does not require an entry, leave it blank.

Dec. $31$