The Horstmeyer Corporation commenced operations early in 2016. A number of expenditures were made during 2016 that were debited to one account called intangible asset. A recap of the $144,000 balance in this account at the end of 2016 is as follows:

Date Transaction Amount

2/3/16 State incorporation fees and legal costs related to organizing the corporation $ 7,000

3/1/16 Fire insurance premium for three-year period 6,000

3/15/16 Purchased a copyright 20,000

4/30/16 Research and development costs 40,000

6/15/16 Legal fees for filing a patent on a new product resulting from an R&D project 3,000

9/30/16 Legal fee for successful defense of patent developed above 12,000

10/13/16 Entered into a 10-year franchise agreement with franchisor 40,000

Various Advertising costs 16,000

Total $144,000

Required:

Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other types of assets, and expenses indicated by the transactions.