Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by Goins Company in 2019.
- Goins developed a new manufacturing process, incurring research and development costs of $136,000. The company also purchased a patent for $60,000. In early January, Goins capitalized $196,000 as the cost of the patents. Patent amortization expense of $19,600 was recorded based on a 10-year useful life.
- On July 1, 2019, Goins purchased a small company and as a result acquired goodwill of $92,000. Goins recorded a half-year's amortization in 2019., based on a 50-year life ($920 amortization). The goodwill has an indefinite life.
Prepare all journal entries necessary to correct any errors made during 1019. Assume the books have not yet been closed for 2019.
Note: Goodwill should not be amortized because the goodwill has an indefinite life.