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

Transcribed Image Text:

As the recently appointed auditor for Blossom Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Blossom 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 Jan. 4 Research costs 1,056,500 5 Legal costs to obtain patent 47,000 Payment of seven months' rent on property leased by Blossom (February to August) 50,400 Feb. 11 Proceeds from issue of common shares 290,400 Apr. 30 Promotional expenses related to start-up of business 158,000 June 1 Development stage costs (eet all six development stage criteria) 216,000 30 30 Start-up costs for first six months of operations 328,000. Prepare the journal entry or entries needed to correct this account. Assume that the patent and the development costs have a useful life of 10 years and that Blossom follows IFRS. (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 O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,125.) As the recently appointed auditor for Blossom Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Blossom 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 Research costs 1,056,500 1,056,500 Legal costs to obtain patent 47,000 1,103,500 Payment of seven months' rent on property leased by Blossom (February to August) 50,400 1,153,900 Proceeds from issue of common shares 290,400 863,500 Promotional expenses related to start-up of business 158,000 1,021,500 Development stage costs (meet all six development stage criteria) 216,000 1,237,500 Start-up costs for first six months of operations 328,000 1,565,500 Prepare the journal entry or entries needed to correct this account. Assume that the patent and the development costs have a useful life of 10 years and that Blossom follows IFRS. (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 O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,125.) Prepare the journal entry or entries needed to correct this account. Assume that the patent and the development costs have a useful life of 10 years and that Blossom follows IFRS. (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 O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit I Account Titles and Explanation Debit Credit (To correct intangible asset account) (To correct intangible asset account) (To record amortization expense) (To record amortization expense) As the recently appointed auditor for Blossom Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Blossom 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 Jan. 4 Research costs 1,056,500 5 Legal costs to obtain patent 47,000 Payment of seven months' rent on property leased by Blossom (February to August) 50,400 Feb. 11 Proceeds from issue of common shares 290,400 Apr. 30 Promotional expenses related to start-up of business 158,000 June 1 Development stage costs (eet all six development stage criteria) 216,000 30 30 Start-up costs for first six months of operations 328,000. Prepare the journal entry or entries needed to correct this account. Assume that the patent and the development costs have a useful life of 10 years and that Blossom follows IFRS. (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 O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,125.) As the recently appointed auditor for Blossom Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Blossom 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 Research costs 1,056,500 1,056,500 Legal costs to obtain patent 47,000 1,103,500 Payment of seven months' rent on property leased by Blossom (February to August) 50,400 1,153,900 Proceeds from issue of common shares 290,400 863,500 Promotional expenses related to start-up of business 158,000 1,021,500 Development stage costs (meet all six development stage criteria) 216,000 1,237,500 Start-up costs for first six months of operations 328,000 1,565,500 Prepare the journal entry or entries needed to correct this account. Assume that the patent and the development costs have a useful life of 10 years and that Blossom follows IFRS. (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 O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,125.) Prepare the journal entry or entries needed to correct this account. Assume that the patent and the development costs have a useful life of 10 years and that Blossom follows IFRS. (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 O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit I Account Titles and Explanation Debit Credit (To correct intangible asset account) (To correct intangible asset account) (To record amortization expense) (To record amortization expense)