The following transaction occurred in ABC Company during :

On the st of Jan ABC Company acquired a patent for $ and estimated its useful life for years.

On th of Jan the company paid $ legal fees to defend their patent.

On st of July the company acquired a license that gives them right to open a new branches in the area for $ and the length of the contract was years.

During the company paid $ monthly on average for the development of one of its software. The viability of the project was very clear on st of Sep The project was completed by Dec st and has indefinite useful life.

On the st of Dec the company acquired XYZ Company for $ when the net fair value of the assets and liabilities of XYZ was $

By st Dec the recoverable amount of the license was $

Required:

Journalize the required entries for transactions occurred during

Journalize the required adjusting entries on st Dec

Show the effect on the financial statements on st Dec