Business, 30.10.2019 02:31 ritatarlue24

In 2021, space technology company modified its model z2 satellite to incorporate a new communication device. the company made the following expenditures: basic research to develop the technology$2,000,000 engineering design work 680,000 development of a prototype device 300,000 acquisition of equipment 60,000 testing and modification of the prototype 200,000 legal and other fees for patent application on the new communication system 40,000 legal fees for successful defense of the new patent 20,000 total$3,300,000 the equipment will be used on this and other research projects. depreciation on the equipment for 2021 is $10,000.during your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.

required: prepare correcting entries that reflect the appropriate treatment of the expenditures. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.) record the correcting entry for the patent.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 21:00

Concrete consulting co. has the following accounts in its ledger: cash; accounts receivable; supplies; office equipment; accounts payable; jason payne, capital; jason payne, drawing; fees earned; rent expense; advertising expense; utilities expense; miscellaneous expense. transactions oct. 1 paid rent for the month, $3,600. 3 paid advertising expense, $1,200. 5 paid cash for supplies, $750. 6 purchased office equipment on account, $8,000. 10 received cash from customers on account, $14,800. 15 paid creditors on account, $7,110. 27 paid cash for miscellaneous expenses, $400. 30 paid telephone bill (utility expense) for the month, $250. 31 fees earned and billed to customers for the month, $33,100. 31 paid electricity bill (utility expense) for the month, $1,050. 31 withdrew cash for personal use, $2,500. journalize the following selected transactions for october 2019 in a two-column journal. refer to the chart of accounts for exact wording of account titles

Answers: 2

Answer

Business, 22.06.2019 01:30

The strength of the economy depends on the balance pf production and consumption of goods and consumption of goods and services

Answers: 1

Answer

Business, 22.06.2019 14:30

The face of a company is often that of the lowest paid employees who meet the customers. select one: true false

Answers: 1

Answer

Business, 23.06.2019 02:10

Goldman services hired a new clerk to keep custody of and maintain all the equipment in the equipment yard. the clerk has not yet been adequately trained on the maintenance needs of the equipment. which internal control procedure needs strengthening?

Answers: 2

Answer

You know the right answer?

In 2021, space technology company modified its model z2 satellite to incorporate a new communication...

Questions