Help Janes Company provided the following information on intangible assets: a. A patent was purchased from the Lou Company for $1,000,000 on January 1, 2016. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $410,000 when Lou sold it to Janes. b. During 2018, a franchise was purchased from the Rink Company for $560,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase. c Janes incurred research and development costs in 2018 as follows: Materials and supplies Personnel Indirect costs Total $146,000 186,000 66,00 $398,000 d. Effective January 1, 2018, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. Required: 1. Prepare the entries necessary for years 2016 through 2018 to reflect the above information. 2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2018, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the entries necessary for years 2016 through 2018 to reflect the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Required 1 Required 2 Prepare the entries necessary for years 2016 through 2018 to reflect the above information. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 1 6 7 Record the purchase of a patent. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2016 1,000,000 Patent Cash 1,000,000 Record entry Clear entry View general Journal Required 2 > HW 0 Surved Help d. Effective January 1, 2018, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. Required: 1. Prepare the entries necessary for years 2016 through 2018 to reflect the above information 2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2018, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule showing the intangible asset section of Janes's December 31, 2018, balance sheet. Partial Balance Sheet December 31, 2018 Intangible assets: Patent Franchise $ 540,000 504,000 Total intangibles $ 1,044,000 (Required 1
