Instructions During the current year, Cartwright Corporation's accountant recorded numerous transactions in an account entitled Intangible Assets, as follows: Xneral Journal Shaded cells have feedback. Adjusting Entries Jan. 2 Research and Development Expense 17,500.00 Cash 17,500.00 Jan. 2 Paid incorporation fees. $17,500 Jan. 11 11 Paid legal fees for the organization of the company. 7,500 Amortization Expense Cash 7,500.00 7,500.00 25 Paid for large-scale advertising campaign for the year. Jan. 25 Advertising Expense 15,000.00 15,000 Cash Apr. 1 Acquired land for $15,000 and a building for $20,000 to house the R&D activities. The building has a 20-year life. 15,000.00 35,000 Apr. 1 Land Building 15,000.00 20,000.00 May 15 Purchased materials exclusively for use in R&D activities. Of these materials, 20% are left at the end of the year and will be used in the same project next year. (They have no alternative use.) 15,000 Cash 35,000.00 May 15 Amortization Expense 15,000.00 June 30 Paid expenses related to obtaining a patent 10,000 Cash 15,000.00 Dec. 11 Purchased an experimental machine from an inventor. The machine is expected to be used for a particular R&D activity for 2 years, after which it will have no residual value. 12,000 May 15 Research and Development Expense 12,000.00 Amortization Expense 12,000.00 31 Paid salaries of employees involved in R&D. 30,000 Jun. 30 Patent 10,000.00 Cash 10,000.00 Required: Dec. 11 Start-up Costs 12,000.00 Prepare adjusting journal entries to eliminate the Intangible Assets account and correctly record all the items, including appropriate amortization adjustments. Cartwright amortizes patents over 10 years. Cash 12,000.00 Dec. 31 20 Salaries Expense Cash 30,000.00 30,000.00 Dec. 31- Amortization Expense 1,000.00 1,000.00 22 Patent