JenStar commenced operations early in 2014. A number of expenditures were made during 2014 that were debited to one account called intangible assets. A summary of the $977,000 balance in this account at the end of 2014 is as follows:

Date Transaction Amount

Feb 7, 2014 5-year franchise agreement entered into with franchisor $10,000

Apr 10, 2014 Copyright purchase 26,000

Apr 16, 2014 The cost of purchasing a patent from an inventor 23,000

May 3, 2014 Executive salaries for time spent on development of an intangible asset 142,000

May 14, 2014. Legal fees for filing a patent on a new product resulting from a research project. 2,000

Jun 2, 2014. Purchase the net identifiable assets of United Corporation 600,000

Jun 22, 2014 Purchase price of new software 36,000

Jul 25, 2014 Consulting fees paid to a third party for advice on a research project 16,000

Jul 28, 2014 Salaries of research staff 122,000

Total $977,000

The purchase price of the United Corporation's net identifiable assets was debited to this account and were as follows:

Receivables $80,000

Equipment 400,000

Patents 140,000

Total assets 620,000

Notes payable assumed (210,000)

Fair value of net assets $410,000

Prepare the December 31, 2014 journal entries to: 1) Reclassify the various expenditures to the correct asset, liability, revenue or expense account as indicated by the transactions. 2) Reclassify the amount paid for United Corporation to the correct accounts. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places.

General JournalPage G4

Date. Account/Explanation. PR. Debit Credit