All categories

3 years ago

Acquisition costs; journal entries

Business

1 answer:

Aleks [24]3 years ago

7 0

Answer:

Journal entries for the transactions are given below

Explanation:

1. Development of new product

DEBIT CREDIT

Research and development $24,000

Cash $24,000

2. Paid the plaintiff for losing patent

DEBIT CREDIT

Legal fee (expense) $8,000

Cash $8,000

3. Bought Equipment and signed non-interest bearing note

DEBIT CREDIT

Equipment Cash price $37,000

Discount on note payable $5,000

Cash paid $18,000

Note payable $24,000

4. Installed sprinkler system

DEBIT CREDIT

Sprinkler system $40,000

Cash $40,000

5. Plaintiff paid for successful infringement suit on its patent

DEBIT CREDIT

Patent $24,000

Cash $24,000

6. Bought New equipment and traded old one

DEBIT CREDIT

New Equipment $13,600

Accumulated depreciation $6,800

Loss on sale $3,400

Old Equipment $13,400

Cash $10,400

Working:

Accumulated depreciation = Original Cost - book value

Accumulated depreciation = $13,400 - $6,600

Accumulated depreciation = $6,800

You might be interested in

Oscar owns a building that is destroyed in a hurricane. His adjusted basis in the building before the hurricane is $130,000. His

damaskus [11]

Answer:

That is $2,000 loss

Explanation:

After the hurricane Oscar received $140,000 for his loss, the adjusted basis for his property was $130,000 so he had a gain of 140,000- 130,000=$10,000.

According to Sec. 1033(a)(2) since the new property that was built (the replacement) was similar we will recognise the amount received from the insurance company ($140,000) to the extent that it pays for the replacement property.

That is

Gain or loss = amount paid by insurance company- cost of replacement property

Gain or loss= 140,000- 142,000

Gain or loss= -$2,000

That is $2,000 loss

8 0

3 years ago

Suppose your roommate just invented an electronic pencil that senses when a word being written is misspelled, beeps, and shows t

irakobra [83]

The need that the electronic pencil fill is the need to erase errors associated with what has been written down digitally.

<h3>What is the potential market for the product?</h3>

The potential market for electronic pencil is the global digital pen market and the global market as a whole.

<h3>What type of consumer good is electronic pencil product?</h3>

The type of consumer good of electronic pencil product is Specialty products.

<h3> How will you distribute the product?</h3>

One can distribute the product via online platforms such as social media, online stores and marketplace, etc.

<h3> What are the other questions that need to be answered before a decision is made?</h3>

The lifespan of the product.
Does it have effect to the human skin
Is it feasible.

Learn more about electronic pencil from

brainly.com/question/11377338

#SPJ1

7 0

1 year ago

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of income a year for 20 years,

Nataly_w [17]

Answer:

The annuity will cost him $963,212.95.-

Explanation:

Giving the following information:

Cash flow= $75,000

Interest rate= 0.0525

n= 20

First, we need to calculate the final value. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

A= annual cash flow

FV= {75,000*[(1.0525^20) - 1]/0.0525} + {[75,000*(1.0525^20)] - 75,000}

FV= 2,546,491.88 + 133,690.82= $2,680,182.70

Now, the present value:

PV= FV/(1+i)^n

PV= 2,680,182.70/(1.0525^20)

PV= $963,212.95

4 0

3 years ago

Jordan is a manager at a technology firm. When the top management makes decisions, Jordan explains it to his subordinates and gi

ioda

Answer:

In the context of the different leader styles, Jordan uses the participating style

Explanation:

Participative leadership also known as Democratic Leadership Style is a method of leadership that involves all team members in terms of identifying important goals as well as developing strategies and procedures to achieve the goals.

7 0

3 years ago

Which factor is not generally viewed by economists as critical to economic growth?

Varvara68 [4.7K]

access to large amounts of natural resources is not generally viewed by economists as critical to economic growth

What factors affect economic growth?

Economists generally agree that economic development and growth are influenced by four factors: human resources, physical capital, natural resources and technology.

What is economic growth ?

Economic growth is defined as: an increase in an economy's production capacity or potential GDP. The rate of economic growth is the key determinant of. changes in a society's standard of living—which is commonly measured using real GDP per capita.

What is economic growth determined by?

Broadly speaking, there are two main sources of economic growth: growth in the size of the workforce and growth in the productivity (output per hour worked) of that workforce. Either can increase the overall size of the economy but only strong productivity growth can increase per capita GDP and income

Learn more about economic growth :

brainly.com/question/1690575

#SPJ4

7 0

1 year ago