Exercise 7-12 (Part Level Submission) On January 1, 2017, Blossom Company had a balance of $388,000 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life 2017, the company had the following additional transactions. Jan. 2 July 1 Sept. 1 Purchased a patent (5-year life) $284,550. Acquired a 9-year franchise; expiration date July 1, 2026, $626,400. Research and development costs $182,500. (a) and (b) (a) Prepare a tabular summary to record the January 1 balance in the Goodwill account as well as the 2017 transactions related to intangibles. All costs incurred were for cash. (b) Record any necessary amortization as of December 31, 2017. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liab Equity item that was reduced.) Assets = Liabilities + Stockholders' Equity Retained Earnings Revenue - Expense - Cash + Patents + + + Common Stock + Dividend Franchise 0 Goodwill = 388000 (a) Bal.& 0 $ Jan. 2 -284550 284550 July 1 -626400 626400 Sept. 1 -182500 -182500 0 Research & development (b) Dec. 31 388000 0 Amortization expense Attempts: 0 of 2 used SAVE FOR LATER SUBMIT AT