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Please show work when doing calculations As the recently appointed auditor for Sheffield Corporation, you have been asked to examine selected accounts before the 6-month
Please show work when doing calculations
As the recently appointed auditor for Sheffield Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2020, are prepared. The controller for Sheffield Corporation mentions that only one account is kept for intangible assets. The account is shown below. Intangible Assets Credit Jan. 4 Debit 945,000 75,600 Balance 945,000 1,020,600 Jan. 5 Jan. 31 94,500 1,115,100 870,100 245,000 Feb. 11 March 31 Research and development costs Legal costs to obtain patent Payment of 7 months' rent on property leased by Sheffield Premium on common stock Unamortized bond discount on bonds due March 31, 2040 Promotional expenses related to start-up of business Operating losses for first 6 months 120,000 990,100 April 30 212,100 242,000 1,202,200 1,444,200 June 30 Prepare the entries necessary to correct this account. Assume that the patent has a useful life of 10 years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit (To correct the account) (To record amortiztion expense)Step by Step Solution
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