As the recently appointed auditor for Sheridan Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2017, are prepared. The controller for Sheridan Corporation mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January 1, 2017, are as follows:

INTANGIBLE ASSETS

DebitCreditBalanceJan.4Research costs1,057,4001,057,400

5Legal costs to obtain patent55,0001,112,400

Payment of seven months' rent on property leased by Sheridan (February to August)49,1001,161,500Feb.11Proceeds from issue of common shares309,000852,500Apr.30Promotional expenses related to start-up of business157,0001,009,500June1Development stage costs (meet all six development stage criteria)229,0001,238,500

30Start-up costs for first six months

323,0001,561,500

Prepare the entries that are necessary to correct this account. Assume that the patent has a useful life of 10 years and that Sheridan Corporation follows IFRS