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Prepare the 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 Corporation follows IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually If no ontruic required colect "No Entre" for the titles and ontor for the ste Round. to decimal place

Prepare the 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 Corporation follows IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually If no ontruic required colect "No Entre" for the titles and ontor for the ste Round. to decimal place

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, 2020, are prepared. The controller for Blossom Corporation mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January 1, 2020, are as follows: INTANGIBLE ASSETS Jan. 4 5 Feb. 11 Apr. 30 June 1 30 Research costs Legal costs to obtain patent Payment of seven months' rent on property leased by Blossom (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 1,040,700 54,000 49,700 155,000 213,000 324,000 Credit 334,500 Prepare the 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 Corporation 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. Round answers to O decimal places e.g. 5,275.)
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, 2020, are prepared. The controller for Blossom Corporation mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January 1, 2020, are as follows: INTANGIBLE ASSETS Jan. 4 5 Feb. 11 Apr. 30 June 1 30 Research costs Legal costs to obtain patent Payment of seven months' rent on property leased by Blossom (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 1,040,700 54,000 49,700 155,000 213,000 324,000 Credit 334,500 Prepare the 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 Corporation 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. Round answers to O decimal places e.g. 5,275.)
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