P10-4 The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were de
bited to one account called intangible asset. A recap of the $144,000 balance in this account at the end of 2021 is as follows: Date Transaction Amount February 3 State incorporation fees and legal costs related to organizing the corporation $ 7,000 March 1 Fire insurance premium for three-year period 6,000 March 15 Purchased a copyright 20,000 April 30 Research and development costs 40,000 June 15 Legal fees for filing a patent on a new product resulting from an R&D project 3,000 September 30 Legal fee for successful defense of patent developed above 12,000 October 13 Entered into a 10-year franchise agreement with franchisor 40,000 Various Advertising costs 16,000 Total $144,000 Required: Prepare the necessary journal entry to clear the intangible asset account and to set up account
the net cash flow will be negative for the amount of $141 this means the stockholders contributed to the firm with cash rather than the firm providing cash for them.
The reason for the decision above is variances are not dependent on the direct material quantity variance and the calculation of all is differ. We also know the total direct material variance is total of material quantity & price variance that is because total variance may be favorable or unfavorable. And the option(d) direct labor efficiency variance do not relate with material variance.
Organizational culture is a set of values, practices, procedures, policies, that distinguish companies from each other. This characteristic is essential for the execution of tasks and is taken as a reference to measure the performance of people. In a serious organization, the appropriation of culture is highly encouraged in order to achieve all the proposed goals in a synchronized manner and considering the organizational climate as one of the fundamental pillars in management.
They generally report profits in the year accrued under an aggradation accounting method, then exclude or subtract costs in the year sustained.
Include all types of money you directly or constructively earn during your tax year in the gross income, using the cash form.
Therefore, as consumers or suppliers compensate after the taxpayer delivers the goods or conducts the programs, the taxpayer may delay profits by using the cash accounting method.
