Problem 10-07A a-c (Video) The intangible assets section of Novak Company at December 31, 2020, is presented below. Patents ($72,000 cost less $7,200 amortization) Franchises ($48,000 cost less $19,200 amortization) $64,800 28,800 $93,600 Total The patent was acquired in January 2020 and has a useful life of 10 years. The franchise was acquired in January 2017 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2021 Paid $22,500 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $131,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life. Paid $46,000 to an extremely large defensive lineman to appear in commercials Jan. 2 Jan.-June Sept.1 Oct. 1 Acquired a franchise for $124,000. The franchise has a useful life of 50 years. 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 titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Patents 22,500 an cash 22,500 Jan.-June Research and Development Expense 131000 Cash 131000 46000 Sept. 1 Advertising Expense Cash 46000 |Franchises Oct. 1 124000 Cash 124000 SHOW LIST OF ACCOUNTSSHOW ANSWER LINK TO TEXT LINK TO TEXT repare journal entries to record the 2021 amortization expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal ntries in the order presented in the problem. If no entry is required, select "No Entry" for he account titles and enter O for the amounts.) eneed in the problem. Account Titles and Explanation Debit Date Credit 8980 Dec. 31 Amortization Expense 8980 Patents To record patents amortization) 5360 Dec. 31 Amortization Expense 5360 Franchises To record franchise amortization) SHOW LIST OF ACCOUNTS Your answer is partially correct. Try again. Prepare the intangible assets section of the balance sheet at December 31, 2021. (Round answ 0 decimal places, e.g. 2,125.) Novak Company Balance Sheet (Partial) December 31, 2021 Property, Plant and Equipment Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR