The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $170,000 balance...

What is the correct journal entry?

Extracted text: The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $170,000 balance in this account at the end of 2021 is as follows: Date Transaction Amount State incorporation fees and legal costs related to organizing the corporation Fire insurance premium for three-year period Purchased a copyright Research and development costs Legal fees for filing a patent on a new product resulting from an R&D project February 3 $ 9,000 March 1 8,000 24,000 44,000 March 15 April 30 June 15 5,000 September Legal fee for successful defense of patent developed above 16,000 30 October 13 Entered into a 10-year franchise agreement with franchisor 44,000 Various Advertising costs 20,000 Total $170,000 Required: Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other types of assets, and expenses indicated by the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record the journal entry to reclassify various expenditures incorrectly charged to the intangible asset account.