As the recently appointed auditor for Sandhill Corporation, you have been asked to examine selected accounts...

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As the recently appointed auditor for Sandhill Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Sandhill mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January 1, 2023, are as follows: INTANGIBLE ASSETS Debit Credit Balance 4 Research costs 1,043,600 1,043,600 5 Legal costs to obtain patent 57,000 1,100,600 Payment of seven months' rent on property leased by Sandhill (February to August) 50,400 1,151,000 11 Proceeds from issue of common shares 309,800 841,200 30 Promotional expenses related to start-up of business 159,000 1,000,200 Development stage costs (meet all six development stage criteria) 222,000 1,222,200 30 Start-up costs for first six months of operations 314,000 1,536,200 Prepare the journal entry or entries needed to correct this account. Allocate rent between the prepaid and expense accounts at Jun 30. Assume that the patent and the development costs have a useful life of 10 years and that Sandhill follows IFRS. (Credit account tities 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 O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, eg. 5,125.) Account Titles and Explanation Debit Credit As the recently appointed auditor for Sandhill Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Sandhill mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January 1, 2023, are as follows: INTANGIBLE ASSETS Debit Credit Balance 4 Research costs 1,043,600 1,043,600 5 Legal costs to obtain patent 57,000 1,100,600 Payment of seven months' rent on property leased by Sandhill (February to August) 50,400 1,151,000 11 Proceeds from issue of common shares 309,800 841,200 30 Promotional expenses related to start-up of business 159,000 1,000,200 Development stage costs (meet all six development stage criteria) 222,000 1,222,200 30 Start-up costs for first six months of operations 314,000 1,536,200 Prepare the journal entry or entries needed to correct this account. Allocate rent between the prepaid and expense accounts at Jun 30. Assume that the patent and the development costs have a useful life of 10 years and that Sandhill follows IFRS. (Credit account tities 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 O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, eg. 5,125.) Account Titles and Explanation Debit Credit

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The Intangible Assets account is not properly classified and the following journal entries are neede... View the full answer