Chan Company has set up a single account “Intangible Assets” for following transactions. This is a sequence of errors in recording the following transactions in the Intangible Assets account.

The following summary discloses the debit entries that have been recorded in Intangible Assets Account during the year 2020. Instructions: 

(1) Prepare the necessary entries to cancel the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Prepare the journal entry to record the correcting entries in a compound entry at December 31, 2020.(Partial entries are provided) 12/31/2020 Patent – Product A 400,000 Intangible Assets 1,500,000.

(2) Prepare the impairment journal entry, if any, for the broadcast license assuming the Recoverable Amount is $ 170,000 on December 31 2020.

(3) Prepare the amortization journal entries for Patent of Product A and Product B and Franchise and in three separate entries on December 31,2020. (Use straight-line amortization method).

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