Exercise 10-13 (Part Level Submission)

Gill Company, organized in 2017, has the following transactions related to intangible assets.

1/2/17Purchased patent (7-year life)$490,0004/1/17Goodwill purchased (indefinite life)360,0007/1/1711-year franchise; expiration date 7/1/2,028550,0009/1/17Research and development costs188,000

(a1)

Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2017, recording any necessary amortization.