During 2010, Salem Company spent $1,360,000 in research and development costs. As a result of its...

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During 2010, Salem Company spent $1,360,000 in research anddevelopment costs. As a result of its R&D activities, Salempatented a new product on September 30, 2010. On September 30,2010, Salem incurred and paid $42,000 of legal costs related to itsnew patent. The patent had a five-year legal life. Salem onlyprepares adjusting journal entries once each year as of 12-31(year-end).
Prepare the entries Salem made in 2010 related to the R&Dactivities and the patent.
Prepare the entries Salem made in 2011 and 2012 related to thepatent.
On September 1, 2013, Salem spent $12,000 to defend its patentrights. Salem’s defense was successful, protecting the patent’sremaining legal life. Prepare the entries Salem made in 2013related to the patent

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	Date	Account Title and Explanation
a)	2010	Research and Development expense	1,360,000
		Cash		1,360,000
		(To record research and development costs incurred)
		Patent	42,000
		Cash		42,000
		(To record legal costs related to new patent)
	2010	Amortization expense ($42,000 / 5 years x 1 / 12)	700
		Patent		700
		(To record amortization of patent)
b)	2011	Amortization expense ($42,000 / 5 years)	8,400
		Patent		8,400
		(To record amortization of patent)
	2012	Amortization expense	8,400
		Patent		8,400
		(To record amortization of patent)
c)	2013	Legal fees expense	12,000
		Cash		12,000
		(To record costs incurred in unsuccessful patent defense)
		Loss on patent	24,500
		Patent ($42,000 - 700- 8,400- 8,400)		24,500
		(To record write-off of patent)

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During 2010, Salem Company spent $1,360,000 in research anddevelopment costs. As a result of its R&D activities, Salempatented a new product on September 30, 2010. On September 30,2010, Salem incurred and paid $42,000 of legal costs related to itsnew patent. The patent had a five-year legal life. Salem onlyprepares adjusting journal entries once each year as of 12-31(year-end).Prepare the entries Salem made in 2010 related to the R&Dactivities and the patent.Prepare the entries Salem made in 2011 and 2012 related to thepatent.On September 1, 2013, Salem spent $12,000 to defend its patentrights. Salem’s defense was successful, protecting the patent’sremaining legal life. Prepare the entries Salem made in 2013related to the patent