prepare journal entries to record the transactions 571023

Jan.

2

Paid $27,000 legal costs to successfully defend the patent against infringement
by another company.

Jan.–June

Developed a new product, incurring $220,000 in research and development
costs. A patent was granted for the product on July 1, and its useful
life is equal to its legal life. Legal and other costs for the patent were
$12,000.

Sept.

1

Paid $110,000 to an extremely large defensive lineman to appear in
commercials advertising the company’s products. The commercials will
air in September and October.

Oct.

1

Acquired a copyright for $120,000. The copyright has a useful life and
legal life of 50 years.