IG Weygandt, Financial & Managerial Accounting, 2e Help System Announcements (Unread) PRINTER VERSION BACK NEXT Problem 9-7A The intangible assets section of Sappelt Company at December 31, 2017, is presented below. Patents (582,000 cost less $8,200 amortization) $73,800 Franchises ($37,000 cost less $14,800 amortization) 22,200 Total $96,000 The patent was acquired in January 2017 and has a useful life of 10 years. The franchise was acquired in January 2014 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2018 Jan. 2 Jan.- June Sept. 1 Paid $36,000 legal costs to successfully defend the patent against Infringement by another company Developed a new product, incurring $141,000 in search and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life. Paid $51,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a franchise for $126,000. The franchise has a useful life of 50 years. Oct. 1 Prepare journal entries to record the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account tities and enter for the amounts) Date Account Titles and Explanation Deb Credit OW LIST OF ACCOUNTS NK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM pare journal entries to record the 2018 amortization expense. (Credit account titles are automatically indented when amount is enter nually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account ounts. Round answers to o decimal places, e.g. 2, 125.) Date Account Titles and Explanation Debit Credit (To record patents amortization) (To record franchise amortization) SHOW LIST OF ACCOUNTS VIDEO: SIMILAR PROBLEN LINK TO TEXT LINK TO TEXT SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM Prepare the intangible assets section of the balance sheet at December 31, 2018. (Round answers to 0 decimal places, e.g. 2,125.) Sappelt Company Balance Sheet (Partial)