Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. as the recently appointed auditor for swifty corpo

As the recently appointed auditor for Swifty Corporation, you have been asked to examine selected...

80.2K

Verified Solution

Question

Accounting

imageimage

As the recently appointed auditor for Swifty Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2020, are prepared. The controller for Swifty Corporation mentions that only one account is kept for intangible assets. The account is shown below. Intangible Assets Debit Credit Balance Jan. 4 951,000 77,040 951,000 1,028,040 Jan. 5 Jan. 31 84,000 1,112,040 861,040 251,000 Feb. 11 March 31 Research and development costs Legal costs to obtain patent Payment of 7 months' rent on property leased by Swifty Premium on common stock Unamortized bond discount on bonds due March 31, 2040 Promotional expenses related to start-up of business Operating losses for first 6 months 134,400 995,440 April 30 222,500 1,217,940 1,462,940 June 30 245,000 Prepare the entries necessary to correct this account. Assume that the patent has a useful life of 10 years. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit (To correct the account) (To record amortiztion expense)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students