Question:

Ma Ltd is a GST registered company with an annual accounting period ending on 30 June 2018. It measures its investment property and all PP & E except equipment at fair value.

Ma Ltd incurred the following expenditures related to research and development that led to a software product: research--$12,000; development charges prior to producing a prototype--$8,000; development charges after achieving technical feasibility but prior to sale of the software--$7,000; marketing costs after the software was ready for sale--$2,000. If capitalised, software expenditures are considered an intangible asset. Ma Ltds bookkeeper debited R & D Expense for the entire $29,000. The credits were journalised correctly. The general ledger also includes accounts for Marketing Expenses and Software. Ignore GST.

Required: Prepare the correcting (not the correct) journal entry, if one is required.