Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Metlock Corporation.
Metlock developed a new manufacturing process, incurring research and development costs of $ The company also purchased a patent for $ In early January, Metlock capitalized $ as the cost of the patents. Patent amortization expense of $ was recorded based on a year useful life.
On July Metlock purchased a small company and as a result recorded goodwill of $ Metlock recorded a halfyear's amortization in based on a year life $ amortization The goodwill hs an indefinite life.
Prepare all journal entries necessary to correct any errors made during Assume the books have not yet been closed for Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts.
No Account Titles and Explanation
Debit
Credit
To record research and development expense
