State the recognition criteria for an intangible asset. ii)Briefly explain the recognition criteria for the research and development costs. iii)
Q: December 10, 2024, for $13,850. Assume the Shriner Co. does not have significant influence over…
A: If a company purchase shares of another company, then it is treated as Investment in the books of…
Q: purpose of recognizing depreciation on the financial statements? Is it designed to report PPE at…
A: Property, plant, and equipment (PPE) are long-term assets that are crucial to business operations.…
Q: What are the three methods to account for depreciation? What are the differences between the three…
A: Methods of depreciation Straight line method Declining/ Diminishing balance method Sum-of-the-year…
Q: The SSC, a cash-method partnership, has a balance sheet that includes the following assets on…
A: Ordinary income refers to the kind of income which is earned through firm or person that is subject…
Q: Retained earnings $ tA
A: Retained Earnings Retained earnings are the profits that a company has earned to date, less any…
Q: DWAKTU Sdn.Bhd. (DWAKTU) manufactures trendy, high quality and moderately priced ladies watches. As…
A: Number of units sold = Beginning inventory + Number of units produced during the year - Ending…
Q: Suppose you are being interviewed for a bookkeeping job for a retailer that uses a perpetual…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total…
A:
Q: When the budgeting process is communicated according to corporate policy, the employees involved are…
A: Four standards should be followed by management accountants: competence, confidentiality, integrity,…
Q: (DL), or production overhead cost (POH). (i) Wages of production line workers. Maintenance of…
A: The total manufacturing costs comprises of direct materials cost, direct labor cost and factory…
Q: Omega Company adjusts its accounts at the end of each month. The following information has been…
A: Depreciation on straight line method = = Cost of asset/ useful life Adjustment makes for…
Q: A business organisation has a working capital ratio of 3:1. Explain whether is an acceptable ratio…
A: Working Capital Working Capital which is considered to be important part in the business entity…
Q: Use the Stockholders' Equity section of FSB's Balance Sheet to answer the questions below. FSB…
A: Introduction: The company's common stock is its ordinary stock. Common stockholders are the legal…
Q: Bairstow Company manufactures and sells a single product. The following costs were incurred during…
A: Lets understand the basics. Entuty generally follow one of the two type of costing system which are,…
Q: The portion of FICA taxes designated as Medicare is paid by a.employees only. b.the employer and the…
A: FICA is a U.S. federal payroll tax. FICA stands for The Federal Insurance Contributions Act.
Q: 2018 and a balance sheet as o (Answ Gross profit: 20. Selvam does not keep his t prepare trading and…
A: In single entry system of accounts, when opening capital is not given, then opening balance sheet is…
Q: Waupaca Company establishes a $470 petty cash fund on September 9. On September 30, the fund shows…
A: Introduction: A journal entry is used to capture a business transaction in the accounting records of…
Q: Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest…
A: Long-term debt is represented by bonds. When a corporation pays a lower interest rate than the…
Q: During two consecutive balance sheet dates, cumulative depreciation for Durand Corporation rose by…
A: A ratio that measures a company financial commitments that are due in a year or within a typical…
Q: During 2004, Bell Corporation constructed assets costing P750,000. The weighted-average accumulated…
A: Introduction: A note payable is a promissory note in writing. Under this agreement, a borrower…
Q: What are opportunity costs? Explain why opportunity costs are not recorded in financial accounting…
A: Opportunity cost is the value or benefit of the next best alternative given up when making a choice.…
Q: Prepare a worksheet to compute the amount of cash paid to each partner at each stage of liquidation.…
A: Given in the question: There are three partners which are Abe, Ben and Cher The profit and loss…
Q: 14. The definitely-not-Russian Olympic team committee manufactures clean urine samples for their…
A: Cost of Goods Manufactured (COGM) :— It is the total cost of manufacturing product during the…
Q: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. FIFO…
Q: Assume that the payroll records of Bramble Oil Company provided the following information for the…
A: In the context of the given question, we are required to compute payroll accounting and prepare the…
Q: reparing an Income Statement and Computing the Receivables Tur eturns, and Bad Debts LO6-1, 6-2, 6-3…
A: The accounts receivable turnover ratio computes the systematic approach of a company in collecting…
Q: d. Assume that the actual level of activity next year was 36,000 direct labor hours and that…
A: As we know that Pre-determined overhead rate can be calculated using the formula given below. The…
Q: Samberg Incorporated had the following transactions. a. October 1 - Sold $22,000 of merchandise on…
A: Introduction: A journal entry is a record of a commercial transaction in a company's accounting…
Q: Paid dividends of $1.25 per share. There were 1,000,000 shares issued and 180,000 shares of treasury…
A: Payment of dividend results in outflow of cash . Dividend is paid only on those shares which are…
Q: PROBLEM 1 The School of Management and Accountancy is planning to begin an online MSA (Master of…
A: Break even point is that point on which we will not earn any profit / Loss from the project. At that…
Q: The comparative balance sheet and income statement of PAJ Co Ltd, have just been prepared and…
A: Cash flow statement includes: Cash flows from operating activities Cash flows from investing…
Q: Popcorn Ltd uses a batch production method to produce its single product by combining two materials…
A: According to the given question, we are going to compute three sub-parts of this question. Material…
Q: Lucia Company has set the following standard cost per unit for direct materials and direct labor.…
A: Direct Materials Price Variance = (Actual Rate - Standard Rate) * Actual Quantity Direct Materials…
Q: Determine the price of a $1.3 million bond issue under each of the following independent…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Jan 1, 2021 Beginning Inventory 80 units at $8 Jan 11, 2021 Purchases 65 units at $10 Jan 23, 2021…
A: FIFO method (First in first out) : Under FIFO method, inventory that is purchased first is sold…
Q: You are looking at purchasing a new computer for online class. Computer A costs $4000 now, and you…
A: Computer A Computer B Cost of Purchase 4000 2500 Upgrade N.A at Year 2 End Upgrade Cost…
Q: BALANCE SHEET EXCEL ACTIVITY Directions: Create a Balance Sheet using Microsoft excel given the…
A: Balance sheet is a part of financial statement of a company. It is a summary of company's assets,…
Q: Required information [The following information applies to the questions displayed below.] The…
A: In this question, we need to compute and record the depreciation expense for the cooktop. We know…
Q: Trey Monson starts a merchandising business on December 1 and enters into the following three…
A: Under specific identification method each item of inventory is identified and its cost record is…
Q: Del Gato Clinic's cash account shows a $14,089 debit balance and its bank statement shows $13,053 on…
A: Journal entry of above transaction are as follows
Q: The following summarizes the aging of accounts receivable for Johnston Supplies, Incorporated as of…
A: Determination of allowance for doubtful account in "T" format are as follows
Q: Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued…
A: recording of journal entry are as follows
Q: ope Corporation has a single class of common stock outstanding. Joe owns 450 shares, which he…
A: Share Capital : It is the part of capital or unit of capital of the company to issue the shares to…
Q: Question 1 Using the following data, prepare the operating activities section of a statement of cash…
A: Note: As per our guidelines, only the first question shall be answered. 1. Statement of Cash…
Q: Commonly Corp. agrees to sell 100 of its products to M&H Co. for P30, 000 in August 2021. (P300 per…
A: Phrases that are given a particular description in a contract are referred to as defined terms. The…
Q: Journal Entries Allied Merchandisers was organized on May 1. Macy Company is a major customer…
A: Introduction: A journal entry is frequently used in an income statement to document a business…
Q: What will this indicate about the operations of the firm
A: Three return on assets profit margin ratio, return on assets, and return on equity—are given to us…
Q: About $140,000, Lamar Corporation bought a piece of property. Later this year but, the business sold…
A: Financial statements are a group of summaries of information regarding the cash movements, cash…
Q: Bramble Corporation’s December 31, 2020 balance sheet showed the following: 7% preferred stock,…
A: Introduction: Stockholders' equity is the value of a company's assets after all liabilities have…
i)State the recognition criteria for an intangible asset.
ii)Briefly explain the recognition criteria for the research and development costs.
iii)
Step by step
Solved in 2 steps
- Determining Classification of Software Costs During 2019, Accounting Software Inc. incurred $200,000 developing a working model of a new software program. During calendar 2020, an additional $50,000 of costs is incurred on the final coding and testing of the product masters. The product is available for sale as of the beginning of 2021 and is expected to have a four-year economic life. Costs incurred in 2021 pertaining to the production of the software and training materials totaled $210,000. Determine how the costs would initially be recorded: (1) research and development expense, (2) non-research and development expense, or (3) intangible asset. Classification Amount 1. Research and development expense 2. Non-research and development expense 3. Intangible asset 2$Magio Company manufactures kitchen equipment used in hospitals. They distribute their products directly to the customer and, for the year ending 2019, they reported the these revenues and expenses. Use this information to construct an income statement for the year 2019.On September 30, 2018, Athens Software began developing a software program to shield personal computersfrom malware and spyware. Technological feasibility was established on February 28, 2019, and the program wasavailable for release on April 30, 2019. Development costs were incurred as follows:September 30 through December 31, 2018 $2,200,000January 1 through February 28, 2019 800,000March 1 through April 30, 2019 400,000Athens expects a useful life of four years for the software and total revenues of $5,000,000 during that time.During 2019, revenue of $1,000,000 was recognized.Required:1. Prepare the journal entries to record the development costs in 2018 and 2019.2. Calculate the required amortization for 2019.
- A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950If an amount is zero, enter "0". Calculate the monthly expense to the nearest dollar and use in subsequent computations. a. Determine Blue Corporation's research and experimental expenditures for 2022 and 2023. Amount of the deduction 2022 619,000 ✔ 2023 703,000 V Feedback ▼ Check My Work Section 174 covers the treatment of research and experimental expenditures. The Regulations define research and experimental expenditures as follows: all such costs incident to the development of an experimental or pilot model, a plant process, a product, a formula, an invention, or similar property, and the improvement of already existing property of the type mentioned. The term does not include expenditures such as those for the ordinary testing or inspection of materials or products for quality control or those for efficiency surveys, management studies, consumer surveys, advertising, or promotions. b. Determine Blue Corporation's deduction for research and experimental expenditures for 2022 and…When a company has post-acquisition expenditures related to Property, Plant, and Equipment it must determine whether the amount should be expensed as an ordinary repair or capitalized as a major repair, addition, or betterment. This requires considering the nature of the expenditure and the use of judgment. Many companies use a threshold amount. Any expenditure below the threshold is expensed. Items over the threshold are examined and a decision is made about whether to expense or capitalize the item. This approach is justified by both materiality and considering costs and benefits. For example, a company with $94 million in net property, plant, and equipment and $250 million of operating expenses would not consider a $100 repair as material. Plus, if the company had to spend thousands of dollars examining every repair expenditure, the costs of doing the analysis could easily outweigh the benefits. SouthEast Equipment has a large number of machines and equipment that are available for…
- Question No. 3 On 1/1/2011, the Health Ministry authorized the construction of a new building in Ibra Hospital expected to cost RO1,000,000 the amount will be received from the govermment grant. The following transactions were occurred during the year Planning and architect's fees are paid RO 40,000 A contract is awarded for RO 950,000 Construction is certified to be 50% complete and a bill for RO 475,000 is received from the contractor RO 450,000 cash paid to contractor Required: Prepare Sta tement of revenues, expenditures & changes in fund balances. Capital Project Fund of Health Ministry References Appropriations Encumbrances Expenditure Fund Balance1. Prepare Appropriations, Encumbrances, Expenditure and Fund Balance Ledger from the following information Jan 1 Jan 10 Feb 1 March 1 March 15 April May 10 June 1 July 10 August Instruction: Ministry of Finance made an appropriation of OMR1500,000 to CollegeofMedicine. The College issued a purchase order, for medical supplies (OMR80,000) and two latest machineries for the Surgical department (OMR150,000 each) General operating expenditure incurred and paid OMR15,000 The college received 40% of the supplies along with a voucher of OMR30,000. The supplier delivery one machinery along with a voucher O M R 1 5 0 ,0 0 0 The college entered into a contract with MHD Consulting for constructing a recreational center in the college. An amount of OMR500,000 is allocated towards the contract. The work is expected to be completed by the end of the year. Construction is certified to complete 10% and the contractor has submited a voucher for OMR50,000. Payment is made based on the voucher. 50% of…More info To specifically finance the project, Swope issued $3,100,000 of 3-year, 9% notes payable on January 2. Interest is payable annually on December 31 each year. Prior to the commencement of the latest construction project, Swope had other debt in its capital structure. All general debt is outstanding as of the beginning of the current year. The general debt consists of $5,400,000 par value, 7% bonds payable and a $1,700,000, 13% note payable. Both debt instruments require annual interest payments each December 31. Print Done
- On August 1, 2024, Reliable Software began developing a software program to allow individuals to customize their investment portfolios. Technological feasibility was established on January 31, 2025, and the program was available for release on March 31, 2025. Development costs were incurred as follows: August 1 through December 31, 2024 January 1 through January 31, 2025 February 1 through March 31, 2025 $ 6,300,000 1,200,000 1,600,000 Reliable expects a service life of five years for the software and total revenues of $8,000,000 during that time. During 2025, revenue of $2,000,000 was recognized. Required: 1. Prepare the journal entries to record the development costs in 2024 and 2025. 2. Calculate the required amortization for 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record the development costs in 2024 and 2025. Note: If no entry is required for a transaction/event, select "No journal entry…On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as itsoffice headquarters. The building was completed on September 30, 2019. Expenditures on the project were asfollows:January 1, 2018 $1,000,000March 1, 2018 600,000June 30, 2018 800,000October 1, 2018 600,000January 31, 2019 270,000April 30, 2019 585,000August 31, 2019 900,000On January 1, 2018, the company obtained a $3 million construction loan with a 10% interest rate. The loanwas outstanding all of 2018 and 2019. The company’s other interest-bearing debt included two long-termnotes of $4,000,000 and $6,000,000 with interest rates of 6% and 8%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company’s fiscal year-end isDecember 31.Required:1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interestmethod.2. What is the total cost of the building?3. Calculate the amount of…Prepare Appropriations, Encumbrances, Expenditure and Fund Balance Ledger from the following information 1. Ministry of Finance made an appropriation of OMR1500,000 to College of Medicine. Jan 1 Jan 10 The College issued a purchase order, for medical supplies (OMR80,000) and two latest machineries for the Surgical department (OMR150,000 each) Feb 1 General operating expenditure incurred and paid OMR15,000 March 1 The college received 40% of the supplies along with a voucher of OMR30,000. The supplier delivery one machinery along with a voucher OMR150,000 March 15 The college entered into a contract with MHD Consulting for constructing a recreational center in the college. An amount of OMR500,000 is allocated towards the contract. The work is expected to be completed by the end of the year. April Construction is certified to complete 10% and the contractor has submited a voucher for OMR50,000. Payment is made based on the voucher. May 10 50% of the supplies ordered on January 10 was…