Required columns are all same as above

From Research and Development expenses, the columns are Adjustments, Income Statement and SFP

Net loss for 2020, for income statement and SFP

Flint Corporation, a private entity reporting under ASPE, was incorporated on January 3, 2019. The corporation's financial statements for its first year of operations were not examined by a public accountant. You have been engaged to audit the financial statements for the year ended December 31,2020 , and your audit is almost complete. The corporation's trial balance is as follows: The following information is for accounts that may still need adjustment: 1. Patents for Flint's manufacturing process were acquired on January 2.2020, at a cost of $83,300. An additional $35.000 was spent in July 2020 and $5.500, in December 2020 to improve machinery covered by the patents and was charged to the Intangible Assets - Patents account. Depreciation on fixed assets was properly recorded for 2020 in accordance with Flint's practice, which is to take a full year of depreciation for property on hand at June 30 . No other depreciation or amortization was recorded. Flint uses the straight-line method for all amortization and amortizes its patents over their legal life, which was 17 years when the patent was granted. Accumulate all amortization expense in one income statement account. 2. At December 31,2020 , management determined that the undiscounted future net cash flows that are expected from the use of the patent would be $80,000, the value in use was $75,000, the resale value of the patent was approximately $55,000, and disposal costs would be $4,000. 3. On January 3, 2019, Flint purchased licensing agreement no. 1, which management believed had an unlimited useful life. Licences similar to this are frequently bought and sold. Flint could only clearly identify cash flows from agreement no. 1 for 15 years. After the 15 years, further cash flows are still possible, but are uncertain. The balance in the Licences account includes the agreement's purchase price of $54,000 and expenses of $3,000 related to the acquisition. On January 1,2020 , Flint purchased licensing agreement no. 2, which has a life expectancy of five years. The balance in the Licences account includes its $52,000 purchase price and $7,000 in acquisition expenses, but it has been reduced by a credit of $3,000 for the advance collection of 2021 revenue from the agreement. In late December 2019 , an explosion caused a permanent 60% reduction in the expected revenue-producing value of licensing agreement no. 1 . In January 2021 , a flood caused additional damage that rendered the agreement worthless. 4. The balance in the Goodwill account results from legal expenses of $31,000 that were incurred for Flint's incorporation on January 3, 2019. Management assumes that the $31,000 cost will benefit the entire life of the organization, and believes that these costs should be amortized over a limited life of 30 years. No entry has been made yet. 5. The Leasehold Improvements account includes the following: (i) There is a $14,000 cost of improvements that Flint made to premises that it leases as a tenant. The improvements were made in January 2019 and have a useful life of 12 years. (ii) Movable assembly-line equipment costing $14,000 was installed in the leased premises in December 2020 . (iii) Real estate taxes of $6,400 were paid by Flint in 2020 , but they should have been paid by the landlord under the terms of the lease agreement. Flint paid its rent in full during 2020. A 10-year non-renewable lease was signed on January 3,2019 , for the leased building that Flint uses in manufacturing operations. No amortization or depreciation has been recorded on any amounts related to the lease or improvements. 6. Included in selling expenses are the following costs incurred to develop a new product. Flint hopes to establish the technical, financial, and commercial viability of this project in fiscal 2021. Salaries of two employees who spend approximately 50% of their time on research and development initiatives (this amount represents their full salary) $120,000 Materials consumed 35,000 Complete the eight-column work sheet to adjust the accounts that require adjustment. (Round answers to 0 decimal places, e.g. 5,275.) Prepaid Expenses Goodwill Intangible Assets - Licenses Accounts Payable Unearned Revenue Common Shares Retained earnings, January 1 , 2020 Sales Cost of Goods Sold Selling Expenses Interest Expense Totals Complete the eight-column work sheet to adjust the accounts that require adjustment. (Round answers to 0 decimal places, e.g. 5,275.) Adjustments Income Statement \begin{tabular}{llll} Income Statement & SFP \\ \hline Debit & Credit & Debit & Credit \end{tabular} Intangible Assets - Patents Leasehold Improvements Prepaid Expenses Goodwill Intangible Assets - Licenses Accounts Payable Unearned Revenue Common Shares Retained earnings, January 1 , 2020 Sales Cost of Goods Sold Cost of Goods Sold Selling Expenses Totals Development Expense Acc. Amort. - Patents Acc. Imp. Losses- Patents Acc. Dep. - Leasehold Improvements Acc. Amort. Licenses Loss on Impairment Acc Imp. Losses. - Licences Acc. Amort. - Patents Acc. Imp. Losses- Patents Acc. Dep. - Leasehold Improvements Acc. Amort. Licenses Loss on Impairment Acc. Imp. Losses. - Licences Depreciation Expense Amortization Expense Net loss for 2020 Totals Flint Corporation, a private entity reporting under ASPE, was incorporated on January 3, 2019. The corporation's financial statements for its first year of operations were not examined by a public accountant. You have been engaged to audit the financial statements for the year ended December 31,2020 , and your audit is almost complete. The corporation's trial balance is as follows: The following information is for accounts that may still need adjustment: 1. Patents for Flint's manufacturing process were acquired on January 2.2020, at a cost of $83,300. An additional $35.000 was spent in July 2020 and $5.500, in December 2020 to improve machinery covered by the patents and was charged to the Intangible Assets - Patents account. Depreciation on fixed assets was properly recorded for 2020 in accordance with Flint's practice, which is to take a full year of depreciation for property on hand at June 30 . No other depreciation or amortization was recorded. Flint uses the straight-line method for all amortization and amortizes its patents over their legal life, which was 17 years when the patent was granted. Accumulate all amortization expense in one income statement account. 2. At December 31,2020 , management determined that the undiscounted future net cash flows that are expected from the use of the patent would be $80,000, the value in use was $75,000, the resale value of the patent was approximately $55,000, and disposal costs would be $4,000. 3. On January 3, 2019, Flint purchased licensing agreement no. 1, which management believed had an unlimited useful life. Licences similar to this are frequently bought and sold. Flint could only clearly identify cash flows from agreement no. 1 for 15 years. After the 15 years, further cash flows are still possible, but are uncertain. The balance in the Licences account includes the agreement's purchase price of $54,000 and expenses of $3,000 related to the acquisition. On January 1,2020 , Flint purchased licensing agreement no. 2, which has a life expectancy of five years. The balance in the Licences account includes its $52,000 purchase price and $7,000 in acquisition expenses, but it has been reduced by a credit of $3,000 for the advance collection of 2021 revenue from the agreement. In late December 2019 , an explosion caused a permanent 60% reduction in the expected revenue-producing value of licensing agreement no. 1 . In January 2021 , a flood caused additional damage that rendered the agreement worthless. 4. The balance in the Goodwill account results from legal expenses of $31,000 that were incurred for Flint's incorporation on January 3, 2019. Management assumes that the $31,000 cost will benefit the entire life of the organization, and believes that these costs should be amortized over a limited life of 30 years. No entry has been made yet. 5. The Leasehold Improvements account includes the following: (i) There is a $14,000 cost of improvements that Flint made to premises that it leases as a tenant. The improvements were made in January 2019 and have a useful life of 12 years. (ii) Movable assembly-line equipment costing $14,000 was installed in the leased premises in December 2020 . (iii) Real estate taxes of $6,400 were paid by Flint in 2020 , but they should have been paid by the landlord under the terms of the lease agreement. Flint paid its rent in full during 2020. A 10-year non-renewable lease was signed on January 3,2019 , for the leased building that Flint uses in manufacturing operations. No amortization or depreciation has been recorded on any amounts related to the lease or improvements. 6. Included in selling expenses are the following costs incurred to develop a new product. Flint hopes to establish the technical, financial, and commercial viability of this project in fiscal 2021. Salaries of two employees who spend approximately 50% of their time on research and development initiatives (this amount represents their full salary) $120,000 Materials consumed 35,000 Complete the eight-column work sheet to adjust the accounts that require adjustment. (Round answers to 0 decimal places, e.g. 5,275.) Prepaid Expenses Goodwill Intangible Assets - Licenses Accounts Payable Unearned Revenue Common Shares Retained earnings, January 1 , 2020 Sales Cost of Goods Sold Selling Expenses Interest Expense Totals Complete the eight-column work sheet to adjust the accounts that require adjustment. (Round answers to 0 decimal places, e.g. 5,275.) Adjustments Income Statement \begin{tabular}{llll} Income Statement & SFP \\ \hline Debit & Credit & Debit & Credit \end{tabular} Intangible Assets - Patents Leasehold Improvements Prepaid Expenses Goodwill Intangible Assets - Licenses Accounts Payable Unearned Revenue Common Shares Retained earnings, January 1 , 2020 Sales Cost of Goods Sold Cost of Goods Sold Selling Expenses Totals Development Expense Acc. Amort. - Patents Acc. Imp. Losses- Patents Acc. Dep. - Leasehold Improvements Acc. Amort. Licenses Loss on Impairment Acc Imp. Losses. - Licences Acc. Amort. - Patents Acc. Imp. Losses- Patents Acc. Dep. - Leasehold Improvements Acc. Amort. Licenses Loss on Impairment Acc. Imp. Losses. - Licences Depreciation Expense Amortization Expense Net loss for 2020 Totals