Rolanda Marshall Company, organized in 2013, has set up a single account for all intangible assets.

| June 10, 2016

Question
E12-6Rolanda Marshall Company, organized in 2013, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2014.

1/2/14

Purchased patent (8-year life)

$350,000

4/1/14

Purchase goodwill (indefinite life)

360,000

7/1/14

Purchased franchise with 10-year life; expiration date 7/1/24

450,000

8/1/14

Payment of copyright (5-year life)

156,000

9/1/14

Research and development costs

215,000

$1,531,000

Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Make the entries as of December 31, 2014, recording any necessary amortization.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Reflect all balances accurately as of December 31, 2014. (Use straight-line amortization.)

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