As the recently appointed auditor for Daleara Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2014, are prepared. The controller for Daleara Corporation mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January 1, 2014, are as follows:

Instructions
Prepare the entry or entries that are necessary to correct this account. Assume that the patent has a useful life of 10 years.

Transcribed Image Text:

INTANGIBLE ASSETS Debit 45,000 49,000 Credit Balance Jan. 4 Research costs 1,050,000 1,050,000 5 31 Legal costs to obtain patent Payment of seven months' rent on property 1,095,000 leased by Daleara (February to August) Proceeds from issue of common shares 1,144,000 Feb. 11 310,000 Mar. 31 Unamortized bond discount on bonds payable Apr. 30 Promotional expenses related to start-up June Development stage costs (meet all six development due March 31, 2018 of business stage criteria) 14,000 157,000 215,000 834,000 848,000 1,005,000 1,220,000 30 Operating losses for first six months 316,000 1,536,000