Reference no: EM131753130

Sheridan Limited organized late in 2016 and set up a single account for all intangible assets. The following summary shows the entries in 2017 (all debits) that have been recorded in Intangible Assets since then:

Jan. 2 Purchased patent (8-year life) $344,000
Mar. 31 Costs to search for new ways to apply patent that was purchased on Jan. 2 21,000
Apr. 1 Purchased goodwill (indefinite life) 313,000
July. 1 Purchased franchise with 10-year life; expiration date July 1, 2027 251,000
1 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 33,000
Aug. 1 Payment for copyright (5-year life) 134,000
1 Purchased trademark (3-year life) 14,400
1 Purchased customer list (2-year life) 8,600
Sept 1 Research costs 238,000
$1,357,000

(a) Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)