On 1 July 2018, Emerald Ltd spent $2 000 000 on advertising. The prior accountant (who hadnt listened to their Intangible assets lecture) capitalised the advertising cost as an intangible asset as follows: Dr Advertising asset $2 000 000 Cr Bank $2 000 000 The prior accountant then amortised this asset over 10 years. He passed amortisation entries up to 30 June 2023. You became the CFO on 30 June 2023 (the prior accountant became a professional surfer). You discovered this material mistake about the advertising asset when you were reviewing the amortisation entries for 30 June 2023. Required: (You may ignore tax and the time value of money; no journal narrations are required)

a) Show the journal entries passed by the prior accountant relating to the advertising cost from 1 July 2018 to the year ended 30 June 2023. (2 marks)

b) Show the journal entries that you would have passed for the advertising cost had you been the accountant since 1 July 2018 to the year ended 30 June 2023 (i.e. the correct journal entries). (1 mark)

c) Given that you only found the material error at 30 June 2023, what journal entries do you need to pass at 30 June 2023 to correct the material mistake relating to advertising of the prior accountant? (6 marks)

d) Prepare the note required by AASB 108 (Accounting Policies, Changes in Accounting Estimates and Errors see paragraphs 41 to 49) for this change relating to advertising for the year ended 30 June 2023. (no need to do Earnings per share) (4 marks)

e) Explain what will be shown in the Statement of net profit and other comprehensive income, Statement of Financial Position and Statement of changes in Equity (excluding notes, just the statements) for the current and prior year. Numbers are not required principles are required. (3 marks)