Instructions Jolis Company has provided information on the following items: 1. A patent was purchased from Totley Company for $600,000 on January 1, 2018. At that time, Jolis estimated the remaining useful life to be 10 years. The patent was carried on Totley's books at $20,000 when it sold the patent. 2. On March 2, 2019, a franchise was purchased from Unal Company for $240,000. In addition, 8% of the revenue from the franchise must be paid to Unal. Revenue earned during 2019 was $600,000. Jolis believes that the life of the franchise is indefinite and that the franchise is not impaired at the end of 2019. 3. R&D costs were incurred as follows: (a) materials and equipment, $50,000; (b) personnel, $80,000; and (c) indirect costs, $40,000. The costs were incurred to develop a product that will go on sale in 2020 and will have an expected life of 5 years. 4. A trade name had been purchased for a sugar substitute at the beginning of 2015 for $81,000. In January 2019, it was suspected that the product caused cancer. Its fair value was estimated to be zero and the trade name was abandoned. 5. The company purchased the net assets of Lansing Company on September 1, 2019, for $950,000, and Lansing was liquidated. Lansing had the following book (fair) values: cash, $50,000 ($50,000); inventory, $150,000 ($160,000); property, plant, and equipment, $750,000 ($900,000); accounts payable, $75,000 ($75,000); and notes payable, $175,000 ($175,000). Any goodwill is not impaired at the end of 2019. Required: Prepare journal entries for Jolis for 2019. The company uses the straight-line method of amortization computed to the nearest month over the maximum allowable life. Assume that the company pays all costs in cash, unless otherwise indicated. General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 125 Notes Receivable EXPENSES 141 Inventory 500 Cost of Goods Sold 160 Property, Plant, and Equipment 181 Patent 515 Supplies Expense 521 Salaries Expense 526 Research and Development Expense 183 Franchise 184 Goodwill 533 Amortization Expense 187 Trade Name 534 Franchise Expense 540 Interest Expense LIABILITIES 559 Miscellaneous Expenses 211 Accounts Payable 891 Loss on Impairment 221 Notes Payable 224 Interest Payable 231 Salaries Payable EQUITY 311 Common Stock 331 Retained Earnings Prepare patent entries required in 2019 on December 31. The company uses the straight-line method of amortization computed to the nearest month over the maximum allowable life. General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Prepare the franchise entries made during 2019. General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Prepare the journal entries to record R&D costs incurred during 2019. General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Prepare the necessary journal entry to trade name on January 1. General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Prepare the necessary journal entries to record the purchase of Lansing Company on September 1, 2019. General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT