The intangible assets and goodwill reported by Sheridan Corporation at December 31, 2020, follow: $35.920 17,960 Copyrights (#1) Less: Accumulated amortization Trademarks Goodwill Total $ 17,960 54,630 116,150 $188,740 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: Jan. Paid $7,650 in legal costs to successfully defend the trademarks against infringement by another company. July Developed a new product, incurring $208.200 in research and $47,300 in development costs with probable future benefits. The product is expected to have a useful life of 22 years. Sept. Paid $63,560 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 $168,000. The new copyright has a useful life of six years. Dec. Determined the fair value of the goodwill to be $93,320. There was no indication that the copyrights or trademarks were impaired. 5 1 1 Oct. 1 31 Date Account Titles and Explanation Debit Credit Jan. 5 Trademarks 7650 Cash 765 July 1 Research Expenses 208200 2082C July 1 47300 Cash (To record research expense) Development Costs Cash (To record development costs) Advertising Expense 4730 Sept. 1 63560 Cash 635 Oct. 1 Copyrights 168000 Cash 1680C Prepare any adjusting journal entries required at December 31. (List all debit entries before credit entries. 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 tities and enter for the amounts.) Date Account Titles and Explanation Debit Dec. Amortization Expense Credit 31 8980 8980 Accumulated Amortization - Copyrights (To record amortization on copyrights acquired on January 1, 2019) Amortization Expense Dec. 31 7000 7000 Accumulated Amortization - Copyrights (To record amortization on copyrights acquired on October 1, 2021) Amortization Expense Dec. 31 1075 Accumulated Amortization - Development Costs 1075 Dec. 31 (To record amortization expense on development cost) 1 Acti Go to