during the current year the accountant for the cartwright corpo 252585

During the current year, the accountant for the Cartwright Corporation recorded numerous transactions in an account labeled Intangibles as follows:

Jan. 2 Incorporation fees $17,500

Jan. 10 Legal fees for the organization of the company 7,500

Jan. 25 Paid for large-scale advertising campaign for the year 15,000

Apr. 1 Acquired land for $15,000 and a building for $20,000 to house the R&D activities. The building has a 20-year life. 35,000

May 15 Purchased materials exclusively for use in R&D activities. Of these materials, 20% are left at the end of the year and will be used in the same project next year. (They have no alternative use.) 15,000

June 30 Filed for a patent 10,000

July 1 Operating loss for first six months of the year 12,000

Dec. 11 Purchased an experimental machine from an inventor. The machine is expected to be used for a particular R&D activity for two years, after which it will have no residual value. 12,000

Dec. 31 Paid employees involved in R&D 30,000

Required

Prepare adjusting journal entries to eliminate the Intangibles account and correctly record all the items. The company amortizes patents over 10 years.

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