Sponad SUSTES for Pharoah Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Pharoah mentio one account is kept for intangible assets. The entries in Intangible Assets since January 1.2023 are as follows INTANGIBLE ASSETS Jan 4 5 Feb. 11 Apr 30 June 1 30 Prepare the journal entry or entries needed to co 30. Assume that the patent and the dev are auton tically indented when the on and enter O for the amounts List oll debit entries befo Account Titles and Explanation Research costs Legal costs to obtain patent Payment of seven months rent on property leased by P Research and Development Experie nangila Asen-Paten Prasad Proceeds from issue of common shares Promotional expenses related to start-up of business Development stage costs (meet all six development stage criterial Start-up costs for first six months of operations Rent Expense Operasing Nous Pe for Expe (To correct intangible asset account) ah February to August treat t Debit Debit 40000 1056.200 42.000 49.700 168.000 225.000 311,000 rent between the prepaid and expense accounts at Jun of 20 years d that aroah follows IFRS edit account titles select "No Entry for the accountles Leg 5.125 Credit Credit OOOOO 304.200
Sponad SUSTES for Pharoah Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Pharoah mentio one account is kept for intangible assets. The entries in Intangible Assets since January 1.2023 are as follows INTANGIBLE ASSETS Jan 4 5 Feb. 11 Apr 30 June 1 30 Prepare the journal entry or entries needed to co 30. Assume that the patent and the dev are auton tically indented when the on and enter O for the amounts List oll debit entries befo Account Titles and Explanation Research costs Legal costs to obtain patent Payment of seven months rent on property leased by P Research and Development Experie nangila Asen-Paten Prasad Proceeds from issue of common shares Promotional expenses related to start-up of business Development stage costs (meet all six development stage criterial Start-up costs for first six months of operations Rent Expense Operasing Nous Pe for Expe (To correct intangible asset account) ah February to August treat t Debit Debit 40000 1056.200 42.000 49.700 168.000 225.000 311,000 rent between the prepaid and expense accounts at Jun of 20 years d that aroah follows IFRS edit account titles select "No Entry for the accountles Leg 5.125 Credit Credit OOOOO 304.200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:B
As the recently appointed auditor for Pharoah Corporation, you have been asked to examine selected accounts before the six-month
financial statements of June 30, 2023, are prepared. The controller for Pharoah mentions that only one account is kept for intangible
assets. The entries in Intangible Assets since January 1, 2023 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 Pha
Proceeds from issue of common shares
Promotional expenses related to start-up of business
Development stage costs (meet all six development stage criterial
Start-up costs for first six months of operations
Account Titles and Explanation
Research and Development Expense
Intangibila Asses-Pate
Rent pens
Prisl
Advertising Expense
Income Summary
Operating Expens
Notes Parable
Interest Expe
(To correct intangible asset account)
Prepare the journal entry or entries needed to correct this account Allocat 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 Pharoah follows IFRS. (Credit account titles
ane automatically indented when the anidunt is entered Do not indet manual
maand select "No Entry for the accounts
and enter O for the amounts List oll debit entries before
places, 5125
onization Dideme
Intangible Assets
(To record amortization expense)
Amortization Expir
Accumulated Ampton Pano
(to record amortization expense)
February to August
Debit
ANNAARMUD NO CO
92000
29500
14200
Debit
13000
1.056,200
42.000
49.700
168.000
225.000
311.000
Credit
Credit
1100
304.200
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