rush Company engaged in the following transactions at the beginning of Year 7: a. Purchased a patent (Patent A ) for $84,000 that had originally been filed in January Year 1 . The purchase was made to protect another patent (Patent B) that the company had filed for in January Year 3 and subsequently received. b. Purchased the rights to a novel by a best-selling novelist in exchange for 10,000 shares of $10 par value common stock selling for $60 per share. The book is expected to sell 1,500,000 copies over the next 3 years with no significant sales of the novel expected beyond 3 years. c. Purchased the franchise to operate a ferry service from the state government for $20,000. A bridge has been planned to replace the ferry, and the bridge is expected to be completed in 5 years. Brush hopes that the ferry will continue as a tourist attraction, but profits are expected to be only 20% of those earned before the bridge is opened. d. Paid $28,000 of legal costs to successfully defend the patent acquired in Transaction a. e. Paid a race car driver $40,000 to have the Brush Company name prominently displayed on the race car for 2 years. Required: 1. Prepare the journal entries to record the preceding transactions. 2. Prepare the journal entries to record the amortization of intangible assets for Year 7, if appropriate. Amortize over the legal life unless a better alternative is indicated. Chart of Accounts General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 151 Supplies 152 Prepaid Insurance 153 Prepaid Advertising 171 Equipment 179 Accumulated Depreciation 181 Patent 183 Franchise 185 Copyright LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 313 Additional Paid-In Capital 331 Retained Earnings REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 515 Supplies Expense 521 Salaries Expense 533 Amortization Expense 536 Advertising Expense 540 Interest Expense 559 Miscellaneous Expenses 910 Income Tax Expense 1. Prepare the journal entries to record the transactions that took place at January 1, Year 7. General Journal Instructions How does grading work? 2. Prepare the adjusting journal entries to record the amortization of intangible assets on December 31 and other adjustments, if appropriate. Amortize over the legal life unless a better alternative is indicated