Question 3

Question 4

(Everything completed just need help with the last missing box for the journal entry)

Swifty Company discovered an error in its accounting records in 2025 . Swifty had purchased a copyright for $51,300 on January 1 , 2022. The copyright has been amortized on a straight-line basis over its 20-year legal life. However, Swifty's accountant neglected to obtain an estimate of the copyright's economic life, which was only fifteen years. Swifty Company used a calendar fiscal year and was subject to a 20% tax rate and follows ASPE. Prepare the journal entries to correct the accounting error and to record copyright amortization for 2025. (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, e.g. 5,275.) Blue Company discovered an error in its accounting records in 2024. Blue acquired patents costing $945,000 on January 1,2022 . The patents have been amortized on a straight-line basis over their 15-year legal life. However, Blue's accountant neglected to obtain an estimate of the patent's economic life, which was only five years. Blue Company uses a calendar fiscal-year, is subject to a 30% tax rate and follows ASPE. Prepare the journal entries to correct the accounting error and record patent amortization for 2024. (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, e.g. 5,275.) Blossom Limited, a private company following ASPE, disposed of some assets during the fiscal year ended December 31, 2023. Based on the research done by the assistant controller, journal entries were made and the following first draft of the income statement was prepared. As controller, you have determined that the assets disposed of do not qualify for treatment as a discontinued operation. Prepare the general journal entry, if any, that Blossom should make at December 31, 2023. (List debit entry before credit entry. 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.) Your answer is correct. What effect will this change have on the assets and liabilities reported on the SFP at December 31, 2023? Assets Liabilities Prepare a revised draft of the partial income statement at December 31, 2023. Flounder Corp., which began operations in January 2020, follows IFRS and is subject to a 30% income tax rate. In 2023 , the following events took place: 1. The company switched from the zero-profit method to the percentage-of-completion method of accounting for its long-term construction projects. This change was a result of experience with the project and improved ability to estimate the costs to completion and therefore the percentage complete. 2. Due to a change in maintenance policy, the estimated useful life of Flounder's fleet of trucks was lengthened. 3. It was discovered that a machine with an original cost of $230,000, residual value of $31,200, and useful life of 4 years was expensed in error on January 23, 2022, when it was acquired. This situation was discovered after preparing the 2023 adjusting entries but before calculating income tax expense and closing the accounts. Flounder uses straight-line depreciation and takes a full year of depreciation in the year of acquisition. The asset's cost had been appropriately added to the CCA class in 2022 before the CCA was calculated and claimed. 4. As a result of an inventory study early in 2023 after the accounts for 2022 had been closed, management decided that the weighted average cost formula would provide a more relevant presentation in the financial statements than the FIFO cost formula. In making the change to weighted average cost, Flounder determined the following: Analyze each of the four 2023 events described above. For each event, identify the type of accounting change that has occurred, and indicate whether it should be accounted for with full retrospective application, partial retrospective application, or prospective application. Vour answer is partially correct. Prepare any necessary journal entries that would be recorded in 2023 to account for events 3 (ignore current-year income tax considerations) and 4. (List all debit entries before credit entries. 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.)