Herzogg Company, organized in 2008, has the following transactions related to intangible
assets.
1/2/08 Purchased patent (7-year life) $560,000
4/1/08 Goodwill purchased (indefinite life) 360,000
7/1/08 10-year franchise; expiration date 7/1/2018 440,000
9/1/08 Research and development costs 185,000
Instructions
Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make
the adjusting entries as of December 31, 2008, recording any necessary amortization and reporting
all intangible asset balances accurately as of that date.
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