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Exercise 9-12 On January 1, 2017, Pharoah Company had a balance of $395,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an Indefinite are. During 2017, the company had the following additional transactions. Jan. 2 Purchased a patent (7-year life) $351,750. July 1 Acquired a 10-year franchise; expiration date My 1, 2027, $604,800. Sept. 1 Research and development costs $177,000. Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (Record entries in the order played in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Tities and Explanation Make an entry as of December 31, 2017, recording any necessary amortization (Round answers to decimal places, e.g. 125. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS DEO: APPLIED SKILLS VIDEO SIMILAR ENERCES Indicate what the intangible asset account balances should be on December 31, 2017 Franchise Click if you would like to Show Work for this question: Seen Show Work

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