Sunland Co., organized in 2019, has set up a single account for all intangible assets. The...

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Sunland Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. Intangible Assets 7/1/20 8-year franchise; expiration date 6/30/28 $40,800 10/1/20 Advance payment on laboratory space (2-year lease) 28.200 12/31/20 Net loss for 2020 including state incorporation fee, $3,000, 13.600 and related legal fees of organizing. $7,000 (all fees incurred in 2020) 84.200 1/2/21 Patent purchased (10-year life) 82,000 3/1/21 Cost of developing a secret formula (indefinite life) 278.000 4/1/21 Goodwill purchased (indefinite life) 12,535 6/1/21 Legal fee for successful defense of patent purchased above 169,000 9/1/21 Research and development costs Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2021, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Franchises 40800 Prepaid Rent 28200 Amortization Expense 10000 Retained Earnings 3600 Patents 96735 Research and Development Expense 251000 Intangible Assets 278000 Amortization Expense Retained Earnings Franchises (To record current amount for Franchises) Rent Expense 5100 Retained Earnings 2550 Prepaid Rent 7650 (To record current amount for Rents) Amortization Expense Patents (To record current amount for Rents) Amortization Expense Patents (To record current amount for Patents) Reflecting all balances accurately as of that date. (lgnore income tax effects.) %24 %24 %24 %24 Sunland Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. Intangible Assets 7/1/20 8-year franchise; expiration date 6/30/28 $40,800 10/1/20 Advance payment on laboratory space (2-year lease) 28.200 12/31/20 Net loss for 2020 including state incorporation fee, $3,000, 13.600 and related legal fees of organizing. $7,000 (all fees incurred in 2020) 84.200 1/2/21 Patent purchased (10-year life) 82,000 3/1/21 Cost of developing a secret formula (indefinite life) 278.000 4/1/21 Goodwill purchased (indefinite life) 12,535 6/1/21 Legal fee for successful defense of patent purchased above 169,000 9/1/21 Research and development costs Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2021, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Franchises 40800 Prepaid Rent 28200 Amortization Expense 10000 Retained Earnings 3600 Patents 96735 Research and Development Expense 251000 Intangible Assets 278000 Amortization Expense Retained Earnings Franchises (To record current amount for Franchises) Rent Expense 5100 Retained Earnings 2550 Prepaid Rent 7650 (To record current amount for Rents) Amortization Expense Patents (To record current amount for Rents) Amortization Expense Patents (To record current amount for Patents) Reflecting all balances accurately as of that date. (lgnore income tax effects.) %24 %24 %24 %24

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