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The Horstmeyer Corporation commenced operations early in 2018. A number of expenditures were made during 2018 that were debited to one account called intangible asset.

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The Horstmeyer Corporation commenced operations early in 2018. A number of expenditures were made during 2018 that were debited to one account called intangible asset. A recap of the $187,000 balance in this account at the end of 2018 is as follows: Date Transaction Amount 2/3/18 State incorporation fees and legal costs related to organizing the corporation $ 6,500 3/1/18 Fire insurance premium for three-year period 5,500 3/15/18 Purchased a copyright 28,000 4/30/18 Research and development costs 48,000 6/15/18 Legal fees for filing a patent on a new product resulting from an R&D project 7,000 9/30/18 Legal fee for successful defense of patent developed above 20,000 10/13/18 Entered into a 10-year franchise agreement with franchisor 48,000 Various Advertising costs 24,000 Total $187,000 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the entry to reclassify various expenditures incorrectly charged to the intangible asset account. Note: Enter debits before credits. Journal entry worksheet 1 Record the entry to reclassify various expenditures incorrectly charged to the intangible asset account. Note: Enter debits before credits. General Journal Transaction 1 Debit Credit Record entry Clear entry View general Journal 1 ctly charged to the Record the er intangible ass No journal entry required Accounts payable Accumulated depreciation Advertising expense Note: Enter debits Transaction Debit Credit Record entry Clear entry View general journal

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