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

1. Riley developed a new manufacturing process, incurring research and development costs of \(\$ 102,000\). The company also purchased a patent for \(\$ 37,400\). In early January, Riley capitalized \(\$ 139,400\) as the cost of the patents. Patent amortization expense of \(\$ 8,200\) was recorded based on a 17 -year useful life.

2. On July 1, 1997, Riley purchased a small company and as a result acquired goodwill of \(\$ 60,000\). Riley recorded a half-year's amortization in 1997, based on a 50 -year life ( \(\$ 600\) 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 .