Record journal entries for correcting the account and to record the amortization expense. As the recently...

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As the recently appointed auditor for Marigold Corporation, you have been asked to examine selected accounts before the 6-mon

Record journal entries for correcting the account and to record the amortization expense.

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Answer 1

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Trans	Particulars	Debit ($)	Credit ($)
	Research and Development Expenses	937000
	Intangible Assets - Patents	73680
	Rent Expense ((5/7)*88900)	63500
	Prepaid Rent ((2/7)*88900)	25400
	Advertising Expense	214100
	Income Summary	256000
	Discount on Note Payable	99540
	Interest Expense	1260
	Common Shares		237000
	Intangible Assets		1433480

	*Assuming straight line amortization:
	(100800/240 months ) x 3 = 1260; 100800-1260= 99540

	Amortization Expense	3684
	Accumulated Amortization - patents		3684
	(73680/10) x 1/2

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