Gill Company, organized in 2017, has the following transactions related to intangible assets

Gill Company, organized in 2017, has the following transactions related to intangible assets
1/2/17 Purchased patent (8-year life) $664,000
4/1/17 Goodwill purchased (indefinite life) 360,000
7/1/17 11-year franchise; expiration date 7/1/2,028 440,000
9/1/17 Research and development costs 188,000

Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2017, recording any necessary amortization.

Calculate ending balances as at 12/31/17.

Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2017, recording any necessary amortization.
Patents debit 664,000
Cash Credit 664,000

Goodwill Debit 360,000
Cash Credit 360,000

Franchises Debit 440,000
Cash Credit 440,000

Research and Development Expense Debit 188000
Cash Credit 188000

Amortization Expense Debit ($664,000 ÷ 8) + [($440,000 ÷ 11) × 1/2]103000
Patents Credit 83000
Franchises Credit 20000

Calculate ending balances as at 12/31/17.

Patents ($664,000 – $83,000) = $581,000
Goodwill =360,000

Franchises ($440,000 – $20,000) = $420,000

Research and Development Expense $188,000