Sheridan Limited organized late in 2016 and set up a single account for all intangible assets. The following summary shows the entries in 2017 (all debits) that have been recorded in Intangible Assets since then:

Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (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.)

Jan. 2 Purchased patent (8-year life) Mar. 31 Costs to search for new ways to apply patent that was purchased on Jan. 2 Apr. 1 Purchased goodwill (indefinite life) July. 1 Purchased franchise with 10-year life; expiration date July 1, 2027 1 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 Aug. 1 Payment for copyright (5-year life) 1 Purchased trademark (3-year life) 1 Purchased customer list (2-year life) Sept. 1 Research costs $331,000 21,000 318,000 255,000 33,000 143,000 14,000 8,000 234,000 $1,357,000 Account Titles and Explanation Debit Credit Patents 331,000 Goodwill 318,000 Franchises 255,000 DUTI Copyright 143,000 Trademarks 14,000 Customer Lists 8,000 Research and Development Expense 255,000 X X Intangible Assets 1,393,653 X Amortization Expense 69,653