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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.

Instructions:
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.

$2.19