The intangible assets section of Justen Company at December 31, 2008, is presented below.

The patent was acquired in January 2008 and has a useful life of 10 years. The copyright was acquired in January 2005 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2009.

Instructions

(a) Prepare journal entries to record the transactions above.

(b) Prepare journal entries to record the 2009 amortization expense for intangible assets.

(c) Prepare the intangible assets section of the balance sheet at December 31, 2009.

(d) Prepare the note to the financials on Justen’s intangibles as of December 31, 2009.

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Patent ($60,000 cost less $6,000 amortization) Copyright ($36,000 cost less $14,400 amortization) Total $54,000 21,600 $75,600