The following transactions involving intangible assets of Pharoah Corporation occurred on or near December 31, 2025....

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The following transactions involving intangible assets of Pharoah Corporation occurred on or near December 31, 2025. 1 2 3. 4. 5. 6. Pharoah paid Grand Company $360,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Pharoah is in business. Pharoah spent $732,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. In January 2026, Pharoah's application for a patent (#2 above) was granted. Legal and registration costs incurred were $247,800. The patent runs for 20 years. The manufacturing process will be useful to Pharoah for 10 years. Pharoah incurred $163,200 in successfully defending one of its patents in an infringement suit. The patent expires during December 2029. Pharoah incurred $441,600 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $241,920, is deemed worthless. Pharoah paid Sneed Laboratories $126,880 for research and development work performed by Sneed under contract for Pharoah. The benefits are expected to last six years. (a) Your answer is partially correct. Prepare journal entries for Pharoah Corporation on the date of the transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Franchises Debit Credit 360000 Cash 2. Research and Development Expense 732000 Cash 3. Patents 247800 Cash The following transactions involving intangible assets of Pharoah Corporation occurred on or near December 31, 2025. 1 2 3. 4. 5. 6. Pharoah paid Grand Company $360,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Pharoah is in business. Pharoah spent $732,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. In January 2026, Pharoah's application for a patent (#2 above) was granted. Legal and registration costs incurred were $247,800. The patent runs for 20 years. The manufacturing process will be useful to Pharoah for 10 years. Pharoah incurred $163,200 in successfully defending one of its patents in an infringement suit. The patent expires during December 2029. Pharoah incurred $441,600 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $241,920, is deemed worthless. Pharoah paid Sneed Laboratories $126,880 for research and development work performed by Sneed under contract for Pharoah. The benefits are expected to last six years. (a) Your answer is partially correct. Prepare journal entries for Pharoah Corporation on the date of the transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Franchises Debit Credit 360000 Cash 2. Research and Development Expense 732000 Cash 3. Patents 247800 Cash