TOM acquired 100% of the shares of DOM on January 1, 2021. DOM produces a brand of sunglasses that protects the eyes from sun damage. You, CPA, is a senior financial analyst at TOM, and the controller, Brian, has asked for your help dealing with a few issues she has noted since the acquisition. Brian is concerned with the monthly internal reporting prepared by DOM. Brian had asked her staff Chris to prepare a summary of DOM's financial results in its first month following the acquisition. February 15, 2021 - TOM and DOM are still in the process of integrating their financial reporting systems. While TOM has established financial reporting processes and systems controls in place, Brian is skeptical about the manual processes in place at DOM. Both TOM and DOM apply accounting standards for private enterprises (ASPE). At a meeting you are provided with an excerpt from DOM's fixed asset register related with XYZ Qtrly Services as below. Prior to the TOM acquiring DOM's shares, DOM had a December 31 year-end. NS Given that the service provider fees should not be capitalized, provide Controller with the required adjusting journal entry, and provide your supporting analysis. MONTH HISTORI TOTAL ACC. ACC S TO ADDITION DEPREC DEPREC DATE CAL COST DEP. DEP DESCRI DEPREC IATION BOOK PTION IATION PURCHAS COST CURREN PRIOR CURREN IATE CURREN CURRENT ED VALUE PRIOR T YEAR YEAR T YEAR THIS T YEAR T YEAR YEAR END END END YEAR EXTERNA 20% 12.0 2019-03-31 262.50 262.50 39.38 44.62 84.00 178.50 EXTERNA 20% 12.0 2019-06-30 262.50 262.50 26.25 47.25 73.50 189.00 EXTERNA 20% 12.0 2019-09-30 262.50 262.50 13.13 49.88 63.00 199.50 EXTERNA 20% 12.0 2019-12-31 262.50 262.50 52.50 52.50 210.00 EXTERNA 20% 9.0 2020-03-31 262.50 262.50 39.38 39.38 223.13 EXTERNA 20% 6.0 2020-06-301 262.50 262.50 26.25 26.25 236.25 EXTERNA 20% 3.0 2020-09-301 262.50 262.50 13.13 13.13 249.38 EXTERNA 20% 2020-12-31 262.50 262.50 262.50 TOM acquired 100% of the shares of DOM on January 1, 2021. DOM produces a brand of sunglasses that protects the eyes from sun damage. You, CPA, is a senior financial analyst at TOM, and the controller, Brian, has asked for your help dealing with a few issues she has noted since the acquisition. Brian is concerned with the monthly internal reporting prepared by DOM. Brian had asked her staff Chris to prepare a summary of DOM's financial results in its first month following the acquisition. February 15, 2021 - TOM and DOM are still in the process of integrating their financial reporting systems. While TOM has established financial reporting processes and systems controls in place, Brian is skeptical about the manual processes in place at DOM. Both TOM and DOM apply accounting standards for private enterprises (ASPE). At a meeting you are provided with an excerpt from DOM's fixed asset register related with XYZ Qtrly Services as below. Prior to the TOM acquiring DOM's shares, DOM had a December 31 year-end. NS Given that the service provider fees should not be capitalized, provide Controller with the required adjusting journal entry, and provide your supporting analysis. MONTH HISTORI TOTAL ACC. ACC S TO ADDITION DEPREC DEPREC DATE CAL COST DEP. DEP DESCRI DEPREC IATION BOOK PTION IATION PURCHAS COST CURREN PRIOR CURREN IATE CURREN CURRENT ED VALUE PRIOR T YEAR YEAR T YEAR THIS T YEAR T YEAR YEAR END END END YEAR EXTERNA 20% 12.0 2019-03-31 262.50 262.50 39.38 44.62 84.00 178.50 EXTERNA 20% 12.0 2019-06-30 262.50 262.50 26.25 47.25 73.50 189.00 EXTERNA 20% 12.0 2019-09-30 262.50 262.50 13.13 49.88 63.00 199.50 EXTERNA 20% 12.0 2019-12-31 262.50 262.50 52.50 52.50 210.00 EXTERNA 20% 9.0 2020-03-31 262.50 262.50 39.38 39.38 223.13 EXTERNA 20% 6.0 2020-06-301 262.50 262.50 26.25 26.25 236.25 EXTERNA 20% 3.0 2020-09-301 262.50 262.50 13.13 13.13 249.38 EXTERNA 20% 2020-12-31 262.50 262.50 262.50