QUESTION #4 Instructions: (A) Prepare four journal entries to record the transactions below (dated between January 2 October 1). (B) Prepare two journal entries to record the 2017 amortization expense for Patents, and, Franchises. (C) Prepare the intangible assets section of the statement of financial position at December 31, 2017.
COMPANY INFO: The intangible assets section of Glover Ltd. At December 31, 2016 is presented below. Patents (60,000 cost less 6,000 amortization) . 54,000 Franchises (48,000 cost less 19,200 amortization) .. 28,000 Total .. 82,800 The patent was acquired in January 2016 and has a useful life of 10 years. The franchise was acquired in January 2013 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2017. Jan. 2 Paid 45,000 legal costs to successfully defend the patent against infringement by another company. Jan.- June Developed a new product, incurring 100,000 in research costs & 68,000 in development costs prior to technological feasibility. A patent was granted for the product on July 1. Its useful life is equal to its 20-year legal life. Sep.1 Paid 58,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials will air in September and October. Oct. 1 Acquired a franchise for 100,000. The franchise has a useful life of 40 years.
GENERAL JOURNAL
(a)
Jan	Account Title	Debit	Credit
2
	Account Title	Debit	Credit
Jan-June
Sep.	Account Title	Debit	Credit
1
Oct.	Account Title	Debit	Credit
1
(b)
Dec.	Account Title	Debit	Credit
31
31
(c)
Your response (show your calculations): (c) Intangible Assets Patents Franchises . Total intangible assets