BAs the recently appointed auditor for Pharoah Corporation, you have been asked to examine selected accounts before the six-monthfinancial statements of June 30, 2023, are prepared. The controller for Pharoah mentions that only one account is kept for intangibleassets. The entries in Intangible Assets since January 1, 2023 are as followsINTANGIBLE ASSETSJan45Feb. 11Apr 30June 130Research costsLegal costs to obtain patentPayment of seven months rent on property leased by PhaProceeds from issue of common sharesPromotional expenses related to start-up of businessDevelopment stage costs (meet all six development stage criterialStart-up costs for first six months of operationsAccount Titles and ExplanationResearch and Development ExpenseIntangibila Asses-PateRent pensPrislAdvertising ExpenseIncome SummaryOperating ExpensNotes ParableInterest Expe(To correct intangible asset account)Prepare the journal entry or entries needed to correct this account Allocat between the prepaid and expense accounts at Jun30. Assume that the patent and the development costs have a useful life of 10 years and that Pharoah follows IFRS. (Credit account titlesane automatically indented when the anidunt is entered Do not indet manualmaand select "No Entry for the accountsand enter O for the amounts List oll debit entries beforeplaces, 5125onization DidemeIntangible Assets(To record amortization expense)Amortization ExpirAccumulated Ampton Pano(to record amortization expense)February to AugustDebitANNAARMUD NO CO920002950014200Debit130001.056,20042.00049.700168.000225.000311.000CreditCredit1100304.200

Intangible Asset -An intangible asset is a non-physical resource with a financial value that has…

Sponad SUSTES for Pharoah Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Pharoah mentio one account is kept for intangible assets. The entries in Intangible Assets since January 1.2023 are as follows INTANGIBLE ASSETS Jan 4 5 Feb. 11 Apr 30 June 1 30 Prepare the journal entry or entries needed to co 30. Assume that the patent and the dev are auton tically indented when the on and enter O for the amounts List oll debit entries befo Account Titles and Explanation Research costs Legal costs to obtain patent Payment of seven months rent on property leased by P Research and Development Experie nangila Asen-Paten Prasad Proceeds from issue of common shares Promotional expenses related to start-up of business Development stage costs (meet all six development stage criterial Start-up costs for first six months of operations Rent Expense Operasing Nous Pe for Expe (To correct intangible asset account) ah February to August treat t Debit Debit 40000 1056.200 42.000 49.700 168.000 225.000 311,000 rent between the prepaid and expense accounts at Jun of 20 years d that aroah follows IFRS edit account titles select "No Entry for the accountles Leg 5.125 Credit Credit OOOOO 304.200

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.6: Buying Intangible Assets And Calculating Amortization Expense

Problem 1OYO