Problem 10-07A a-c (Video) The intangible assets section of Whispering Winds Company at December 31, 2020, is presented below Patents ($77,000 cost less 7,700 amortization) Franchises (633,000 cost less $13,200 amortization) 69,300 9,800 89,100 Total The patent was acquired in January 2020 and has a userul life of 10 years. The franchise was acquired in January 2017 and also has a useful life of 10 years. The Tollowing cash transactions may have affected intangible assets during 2021 an. 2 Paid $31,500 legal costs to successfully defend the patent against infringernent by another company. Developed a new product, incurring144,000 in research and development costs. A Patent was granted for the product on July 1. Its useful life is equal to its legal life. -June Sept Paid $46,000 to an extremely large derensive lineman to appear in commercials advertising the company's products. The commercials will air in September and October. Oct. 1 Acquired a franchise for $138,000. The franchise has a useful e 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 0 for the amounts.) Date Account Titles and Explanation Prepare ournal entries to record the 2021 amortizatior ex ense credit account titles are automatically indented when amount is entered. Do not indent manu ally. Record ournal entries in the order presented in e problem If no entry is required, select No Entry" for the account tities and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit (To record patents amortizetion) To record franchbe amortization) Prepare the intangible assets section of the balance sheet at December 31, 2021. (Round answers to 0 decimal places, e.g. 2,125.) Winds Company Balance Sheet (Partial)