E12-5B (Correct Intangible Asset Account) As the recently appointed auditor for Clinton Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2014, are prepared. The controller for Clinton Corpor

E12-5B (Correct Intangible Asset Account) As the recently appointed auditor for Clinton Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2014, are prepared. The controller for Clinton Corporation mentions that only one account is kept for Intangible Assets.

                                                                Intangible Assets

                                                                           Debit                     Credit                       Balance

Jan. 6 Premium on common stock                                                 600,000                   (600,000)

Feb. 2 Promotional expenses related to

start-up of business                                        126,000                                                 (474,000)

Mar. 1 Research and development costs     1,160,000                                                 686,000

Apr. 2 Unamortized bond premium on 20 year

bonds due March 31, 2034                                62,400                                                  623,600

May 8 Legal costs to protect patent                  30,000                                                  653,600

June 30 Operating losses for first 6 months     86,000                                                  739,600

Instructions

Prepare the entry or entries necessary to correct this account. Assume that the patent has a useful life of 12 years.