The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $183,000 balance in this account at the end of 2021 is as follows:

Date	Transaction	Amount
February 3	State incorporation fees and legal costs related to organizing the corporation	$	10,000
March 1	Fire insurance premium for three-year period		9,000
March 15	Purchased a copyright		26,000
April 30	Research and development costs		46,000
June 15	Legal fees for filing a patent on a new product resulting from an R&D project		6,000
September 30	Legal fee for successful defense of patent developed above		18,000
October 13	Entered into a 10-year franchise agreement with franchisor		46,000
Various	Advertising costs		22,000
	Total	$	183,000

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.)

• Record the entry to reclassify various expenditures incorrectly charged to the intangible asset account.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1