Question $13$ of $19$

$-17$

View Policies

Current Attempt in Progress

As the recently appointed auditor for Blossom Corporation, you have been asked to examine selected accounts before the six$-$month financial statements of June $30,2023,$ are prepared. The controller for Blossom mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January $1,2023,$ are as follows:

$\backslash$table$[[,,$INTANGIBLE ASSETS$],[,,,$Debit,Credit$],[$Jan$.,\backslash$table$[[4],[5]],\backslash$table$[[$Research costs$],[$Legal costs to obtain patent$],[$Payment of seven months' rent on property leased by Blossom $($Febrom$]],\backslash$table$[[1,040,700],[54,000],[49,700]],],[$Feb$.,11,$Proceeds from issue of common shares,,$334,500],[$Apr$.,30,$Promotional expenses related to start$-$up of business,$155,000,],[$June$,1,$Development stage costs $($meet all six development stage criteria$),213,000,],[,30,$Start$-$up costs for first six months of operations,$324,000,]]$

Prepare the journal entry or entries needed to correct this account. Allocate rent 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 Blossom follows IFRS. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries. Round answers to $0$ decimal places, eg$.5,125.)$

Account Titles and Explanation

Debit

Credit