As the recently appointed auditor for Hillary Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2012, are prepared. The controller for Hillary Corporation mentions that only one account is kept for intangible assets.

InstructionsPrepare the entry or entries necessary to correct this account. Assume that the patent has a useful life of 12years.

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Intangible Assets Debit Credit Balance Research and development costs Legal costs to obtain patent Payment of 7 months' rent on property leased by Hillary Premium on common stock Unamortized bond discount on bonds due March 31, 2032 Promotional expenses related to start-up of business Operating losses for first 6 months 940,000 1,015,000 Jan. 4 Jan. 5 Jan. 31 940,000 75,000 1,106,000 91,000 250,000 Feb. 11 March 31 856,000 940,000 84,000 April 30 207,000 1,147,000 1,288,000 June 30 141,000