Sheridan Corporation, organized in 2018, has these transactions related to intangible assets in that year:

Jan. 2		Purchased a patent (5-year life), $ 297,900.
Apr. 1		Goodwill purchased as part of an acquisition of another company, $ 369,300.
July 1		Acquired a 9-year franchise; expiration date July 1, 2027, $ 580,050.
Sept. 1		Research costs paid, $ 191,560. No marketable product has been identified as yet.
Dec. 31		Determined that the recoverable amount of the patent was $ 159,420.
Dec. 31		Determined that the recoverable amount of the franchise was $ 541,360.
Dec. 31		Determined that the goodwill was not impaired.

(a)

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Prepare the necessary entries to record these transactions. Assume all costs incurred were for cash. (Credit account titles are automatically indented when the 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	Debit	Credit
choose a transaction datechoose a transaction date Jan. 2Apr. 1July 1Sep. 1	Patents	297900	enter a credit amount
	Cash	enter a debit amount	297900
choose a transaction datechoose a transaction date Jan. 2Apr. 1July 1Sep. 1	Goodwill	369300	enter a credit amount
	Cash	enter a debit amount	369300
choose a transaction datechoose a transaction date Jan. 2Apr. 1July 1Sep. 1	Franchise	580050	enter a credit amount
	Cash	enter a debit amount	580050
choose a transaction datechoose a transaction date Jan. 2Apr. 1July 1Sep. 1	Research Expenses	191560	enter a credit amount
	Cash	enter a debit amount	191560

Attempts: 1 of 1 used

(b)

Prepare any adjusting journal entries required at December 31, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	enter an account title to record amortization expense on december 31	enter a debit amount	enter a credit amount
	enter an account title to record amortization expense on december 31	enter a debit amount	enter a credit amount
	enter an account title to record amortization expense on december 31	enter a debit amount	enter a credit amount
	(To record amortization expense.)
Dec. 31	enter an account title To record impairment of patents on december 31	enter a debit amount	enter a credit amount
	enter an account title To record impairment of patents on december 31	enter a debit amount	enter a credit amount
	(To record impairment of patents.)
Dec. 31	enter an account title To record franchise impairment on december 31	enter a debit amount	enter a credit amount
	enter an account title To record franchise impairment on december 31	enter a debit amount	enter a credit amount
	(To record franchise impairment.)
Dec. 31	enter an account title To record goodwill impairment on december 31	enter a debit amount	enter a credit amount
	enter an account title To record goodwill impairment on december 31	enter a debit amount	enter a credit amount
	(To record goodwill impairment.)