Question 5 of 5 View Policies 4 Current Attempt in Progress As the recently appointed auditor...

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Question 5 of 5 View Policies 4 Current Attempt in Progress As the recently appointed auditor for Crane Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Crane mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January 1, 2023, are as follows: INTANGIBLE ASSETS 5 11 30 1 > 30 Research costs Legal costs to obtain patent Payment of seven months' rent on property leased by Crane (February to August) Proceeds from issue of common shares Promotional expenses related to start-up of business Development stage costs (meet all six development stage criteria) Start-up costs for first six months of operations Debit 1,041,900 51,000 49,700 -/1 E 160,000 219,000 319,000 Credit 292,300 Balance 1,041,900 1,092,900 1,142,600 850,300 1,010,300 1,229,300 1,548,300 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 Crane 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.) Question 5 of 5 View Policies 4 Current Attempt in Progress As the recently appointed auditor for Crane Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Crane mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January 1, 2023, are as follows: INTANGIBLE ASSETS 5 11 30 1 > 30 Research costs Legal costs to obtain patent Payment of seven months' rent on property leased by Crane (February to August) Proceeds from issue of common shares Promotional expenses related to start-up of business Development stage costs (meet all six development stage criteria) Start-up costs for first six months of operations Debit 1,041,900 51,000 49,700 -/1 E 160,000 219,000 319,000 Credit 292,300 Balance 1,041,900 1,092,900 1,142,600 850,300 1,010,300 1,229,300 1,548,300 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 Crane 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.)

Answer rating: 100% (QA)

According to the International Financial Reporting Standards IFRS research costs are expensed as inc... View the full answer