stion 6 of 7 10.83/20 III The intangible assets and goodwill reported by Sandhill Corporation at December 31, 2020. follow: $37,580 18,790 Copyrights (#1) Less: Accumulated amortization Trademarks Goodwill $18,790 55,050 131,110 $204.950 Total A copyright (#1) was acquired on January 1, 2019, and has a useful life of four years. The trademarks were acquired on January 1. 2017, and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually. Jan. 5 1 The following cash transactions may have affected intangible assets and goodwill during 2021: Paid $7.010 in legal costs to successfully defend the trademarks against infringement by another company July Developed a new product, incurring $217,920 in research and $46,400 in development costs with probable future benefits. The product is expected to have a useful life of 20 years. Sept. Paid $54,940 to a popular hockey player to appear in commercials advertising the company's products. The commercials will air in early September Acquired another copyright (#2) for $174,000. The new copyright has a useful life of six years. 1 Oct. 1 o th A copyright (#1) was acquired on January 1, 2019, and has a useful life of four years. The trademarks were acquired on January 1, 2017, and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually. The following cash transactions may have affected intangible assets and goodwill during 2021: 5 Jan. July 1 Sept. 1 Paid $7.010 in legal costs to successfully defend the trademarks against infringement by another company Developed a new product, incurring $217,920 in research and $46,400 in development costs with probable future benefits. The product is expected to have a useful life of 20 years. Paid $54,940 to a popular hockey player to appear in commercials advertising the company's products. The commercials will air in early September Acquired another copyright (#2) for $174,000. The new copyright has a useful life of six years. Determined the fair value of the goodwill to be $87,420. There was no indication that the copyrights or trademarks were impaired. Oct. 1 Dec. 31 reparejournal entries to record the above transactions. List all debit entries before creditentries. 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 bites and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit in 5 Trademarks 7010 Cash 7010 ily 1 v Research Expenses 217920 Cash 217920 (To record research expense) ily 1 Development Costs 46400 Cash 46400 (To record development costs) it. 1 Advertising Expend 54940 Cash 54940 ct 1 Copyrights 174000 Question 6 of 7 10.83/20 Prepare any adjusting journal entries required at December 31. (List alldehit entries before creditentries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to decimal places, eg. 5,275.If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit Dec Amortization Expense 9395 31 9395 Accumulated Amortization - Copyrights (To record amortization on copyrights acquired on January 1, 2019) Dec 31 Amortization Expense 7250 7250 Accumulated Amortization Conights (To record amortization on copyrights acquired on October 1, 2021) Dec 31 Amortation Expense 2320 2320 Development Case (To record amortization expense on development cost) earch o D ti 135 PM ENG 10.837 20 iii Date Account Titles and Explanation Dec. Amortization Expense 31 Debit Credit 9395 9395 Accumulated Amortization. Copyrights (To record amortization on copyrights acquired on January 1, 2019) Dec. 31 Amortization Expense 7250 7250 Accumulated Amortization - Copyrights (To record amortization on copyrights acquired on October 1, 2021) Dec 31 Amortization Expense 2320 Development Costs 2320 (To record amortization expense on development cost) Dec. 31 No Entry o D No Entry