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Accounting for Intangible Acquisition Assets

Transactions during 2011 of the newly organized Menlove Corporation included the following:

2-Jan Paid legal fees of $15,000 and stock certificates costs of $8,300 to complete organization of the corporation.

15-Jan Hired a clown to stand in front of the corporate office for two weeks and hand out pamphlets and candy to create goodwill for the new enterprise. Clown cost, $1,000, pamphlets and candy, $500

1-Apr Patented a newly developed process with cost as follows:
Legal fees to obtain patent $42,900
Patent application and licensing fees $6,350
Total $49,250

It is estimated that in six years other companies will have developed improved processes, making the Menlove Corp. process obsolete.

1-May Acquired both a license to use a special type of container and a distinctive trademark to be printed on the container n exchange for 600 shares of Menlove Corp. no-par common stock selling for $50 per share The license is worth twice as much as the trademark, both of which may be used for six years.

1-Jul Constructed a shed for $131,000 to house prototypes of experimental models to be developed in future research projects.

31-Dec Incurred salaries for an engineer and chemist involved in product development totaling $175,000 in 2011.

1) Give journal entries to record the precedings transactions. (Ignore amortization of intangible assets)

2) Present the Intangible Assets section of Menlove Corp.'s balance sheet at Dec. 31, 2011.