SLIV PULLSCREEN PRINTER VERSION BACK RCES ant NEXT Problem 10-07A a- (Video) The intangible assets section of Ayayal Company at December 31, 2020, is presented below Patents($60,000 cost less $6,000 amortization) Franchises (553,000 cost less $21,200 amortization) Total $54,000 31,800 585,100 2 The patent was acquired in January 2020 and has a useful life of 10 years. The franchise was acquired in January 2017 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2021 Jan. 2 Paid $36,000 legal costs to successfully defend the patent against Infringement by another company. Jan- Developed a new product, incurring $137,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its June legal life. Sept. 1 Paid $47,000 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 $130,000. The franchise has a useful life of 50 years, dy 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 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 2 V Patents 36,000 Cash 36,000 Jan-June Research and Development Expense 137,000 Prepare journal entries to record the 2021 amortization expense. (Credit account tities are automatically indented when amount is entered. Do not inden 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 for the amounts.) Date Account Titles and Explanation Debit Credit (To record patents amortization) (To record franchise amortization) Prepare the intangible assets section of the balance sheet at December 31, 2021. (Round answers to decimal places, ag. 2,125.) Ayayal Company Balance Sheet (Partial) mistinn One Show Work