this information, prepare the Adjusted Journal Entries recanco Company for the current year. Based on Jan 1 - Purchased a small company and recorded good will a) How did the purchase of this company ger b) Show the year end Adjusting Journal Entry if it has been detes Goodwill has been impaired this year. May 1 - Purchased a patent for $90,000 with an years. Exercise 9. The following are selected transactions of Franco Company for the current year. Based on this information, prepare the Adjusted Journal Entries required at the end of the year. Jan 1 - Purchased a small company and recorded goodwill of $150,000. a) How did the purchase of this company generate the asset goodwill of $150,000 ? b) Show the year end Adjusting Journal Entry if it has been determined that $50,000 of the Goodwill has been impaired this year