Question

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As the recently appointed auditor for Ivanhoe Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2017, are prepared. The controller for Ivanhoe Corporation mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January 1, 2017, are as follows:

INTANGIBLE ASSETS
					Debit		Credit		Balance
Jan.	4		Research costs		1,041,100				1,041,100
	5		Legal costs to obtain patent		59,000				1,100,100
			Payment of seven months’ rent on property leased by Ivanhoe (February to August)		50,100				1,150,200
Feb.	11		Proceeds from issue of common shares				306,000		844,200
Apr.	30		Promotional expenses related to start-up of business		157,000				1,001,200
June	1		Development stage costs (meet all six development stage criteria)		210,000				1,211,200
	30		Start-up costs for first six months		326,000				1,537,200

Prepare the entries that are necessary to correct this account. Assume that the patent has a useful life of 10 years and that Ivanhoe Corporation follows IFRS. (Round answer to 0 decimal places, e.g. 5,275. 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.)

No.	Account Titles and Explanation	Debit	Credit
1.
	(To correct intangible assets account)
2.

Answer 1

Solution Reseavch and Developmet spewse namgible Amet Developmet costs 10 41 100 210000 5१००० palents 3586 Rent Epanse 5)x 50 100 314 o6otsi 316000 ndvertsingEpee Income Aumme Зобо00 Common Shaves Intangible Asets T31200 Corveet nangialk To Anet -Alc