Acc422 Intermediate Accounting: P12-1 Reichenbach Co., organized in 2009, has set up

Acc422 Intermediate Accounting
P12-1 (Correct Intangible Asset Account)
Reichenbach Co., organized in 2009, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2009 and 2010.
Intangible Assets
01-Jul-09 8-year franchise; expiration date 6/30/17 48,000
01-Oct-09 Advance payment on laboratory space (2-year lease) 24,000
31-Dec-09 Net loss for 2009 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2009) 16,000
02-Jan-10 Patent purchased (10-year life) 84,000
01-Mar-10 Cost of developing a secret formula (indefinite life) 75,000
01-Apr-10 Goodwill purchased (indefinite life) 278,400
01-Jun-10 Legal fee for successful defense of patent purchased above 12,650
01-Sep-10 Research and development costs 160,000

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, 2010, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore income tax effects.) (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
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