1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
larisa86 [58]
3 years ago
11

On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware

. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows:
September 30 through December 31, 2021 $3,600,000
January 1 through February 28, 2022 1,500,000
March 1 through April 30, 2022 594,000

Athens expects a useful life of four years for the software and total revenues of $7,800,000 during that time. During 2022, revenue of $1,560,000 was recognized.

Required:
a. Prepare a journal entry to record the development costs in each year of 2021 and 2022.
b. Calculate the required amortization for 2022.
Business
1 answer:
Ray Of Light [21]3 years ago
7 0

Answer:

2021

Dr Research and development expense $3,600,000

Cr Cash $3,600,000

2022

Dr Research and development expense 1,500,000

Dr Software and development costs 594, 000

Cr Cash 2,094,000

B. $148,500

Explanation:

1. Preparation of the journals entry

2021

Dr Research and development expense $3,600,000

Cr Cash $3,600,000

(To record the expenses incurred on research and development)

2022

Dr Research and development expense 1,500,000

Dr Software and development costs 594, 000

Cr Cash 2,094,000

(1,500,000+594,000)

(To record the software development costs incurred)

2.Calculatation for the amortization for 2022

Using percentage of revenues method

Amortization= Current revenue/Total revenue* Software development costs

Amortization=$1,560,000/$7, 800,000*$594,000

Amortization=0.2*$594,000

Amortization=$118,800

Using straight line method

Amortization =1/Useful life* Software devel opment costs

Amortization=1/4*$594,000

Amortization=$148,500

Based on the above calculation Tmte expense amounts under straight-line method is higher . Which means that , the amortization is $148,500.

You might be interested in
Help!!!!! please give an explanation!
Murrr4er [49]
I’m sure that it’s true you nerd
7 0
3 years ago
A leveraged buyout refers to a(n): a. action where the management of the firm and/or an external party buys all of the assets of
grigory [225]

Answer:

a restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.

Explanation:

A leverage means taking a loan to consummate a deal. So a leveraged buyout is when an entity takes a loan in order to buy all the assets of a firm and take it private.

Leveraged buyout is practices by parties that do not have enough funds to purchase a company, but they see a high return of Investments over time.

So they take a loan to buyout the company in the hope that returns will eventually cover the loan taken

3 0
3 years ago
Using a single plantwide rate from question 25, the factory overhead allocated per unit of Product A in the Painting Department
fiasKO [112]

Answer:

a. $236.32 per unit

Explanation:

The Full question is "Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. Overhead Total Direct Labor Hours DLH per Product A B Painting Dept. $250,000 10,000 16 4 Finishing Dept. 75,000 12,000 4 16 Totals $325,000 22,000 20 20"

A single plant wide factory overhead rate is been used. Thus, Overhead rate per hour = $325000 / 22000 hrs = $14.77

The total hours required to produce a product = 20 hours in painting + 20 hours in finishing

The total hours required to produce a product = 40 hours

Overhead per product = Overhead rate per hour * The total hours required to produce a product

Overhead per product = $590.8

The DLH required for a product A in painting department = 16 DLH

. Overhead rate per unit for product A in painting department = ($590.8/40 DLH) *16 DLH = $236.32 Per Unit

8 0
3 years ago
Help plssssssssssssss
kupik [55]
4) paring 5) fish 6) utility 7) filet 8) chef 9) turning 10) bread

(might be wrong)
5 0
3 years ago
Alcohol is a ___________ A. depressant that effects the central nervous system. B. diuretic, eliminating water from the body. C.
trasher [3.6K]
A. depressant that effects the central nervous center.
8 0
3 years ago
Read 2 more answers
Other questions:
  • Evaluate Microsoft’s product and marketing evolution over the years. What has the company done well, and where did it falter?
    6·1 answer
  • Many insurers pay benefits based on the average fee charged in a geographical area. This is referred to as which of the followin
    13·1 answer
  • As a student in the Principles of Management class of Ama Ghana University, you are expected to have experiential knowledge so t
    14·1 answer
  • In addition to tracking the volume and sentiment of consumer-generated content for your own brand, what else can you track?
    14·1 answer
  • Four years ago, Lyle Mercer was injured in a railroad accident and sued the railroad for damages. The jury required the railroad
    9·1 answer
  • The master budget is: a.used for misinformation and coordination. b.broken down into daily budgets. c.typically for a 1-year per
    7·1 answer
  • Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,100 on January 15, 2018. On December 31, 2020, she sold all 1,000
    9·1 answer
  • PLEASE HELP, TIMED
    5·2 answers
  • On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for
    12·1 answer
  • List four differences between market price and seasonal product​
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!