Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by the Glover Company in 1997.

1. Glover developed a new manufacturing process, incurring research and development costs of \(\$ 136,000\). The company also purchased a patent for \(\$ 39,100\). In early January, Glover capitalized \(\$ 175,100\) as the cost of the patents. Patent amortization expense of \(\$ 10,300\) was recorded based on a 17 -year useful life.

2. On July 1, 1997, Glover purchased a small company and as a result acquired goodwill of \(\$ 76,000\). Glover recorded a half-year's amortization in 1997 , based on a 50 -year life (\$760 amortization).

\section*{Instructions}

Prepare all journal entries necessary to correct any errors made during 1997. Assume the books have not yet been closed for 1997 .