Question

As the recently appointed auditar far Ivanhoc Corporation, you have been asked to cxaminc selected accounts before the six-month financial statements of June 30, 2020, are prepared. The controller for Ivanhoe Corporation mentions that only one account is kept for intangible assets. The cntries In Intangible Assets since January 1, 2020, are as follows: INTANGIBLE ASSETS Credit Jan 4 5 Debit 1,043 100 44.000 49.700 Balance 1043.100 1.084,100 1.138,200 843.300 1.000.300 1214.300 1538.300 Research posts Legal costs to obtain patent Payment of seven months' rent on property leased by Ivanhoe (February to August Proceeds from issue of common shares Promotional experses related to start-up of business Development stage costs (meet all development stage criteria Start-up costs for first six months at operations Feb 11 Aor. 30 June 1 30 295.500 165.000 210.000 320,000 Prepare the entry or entries reeded to correct this account. Assume that the patent has a useful life of 10 years and that Ivanhoe Corporation follows IFRS. 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 O for the amounts No. Account Titles and Explanation Debit Credit (To correct intangble asset account Amortization Expense 2 Patents (To record amartization experes)

Answer 1

1	Account titles	Debit	Credit
	Research and Development Expense	1,043,100.00
	Intangible Assets - Development Costs	210,000.00
	Intangible Assets - Patents	46,000.00
	Rent Expense	35,500.00
	Prepaid Rent	14,200.00
	Advertising Expense	165,000.00
	Income Summary	320,000.00
	Common Shares		295,500.00
	Intangible Assets		1,538,300.00
2	Amortization Expense	2,300.00
	Accumulated Amortization - Patents		2,300.00