Early in 2018, the Excalibur Company began developing a new software package to be marketed. The...
Early in 2018, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2018 at a cost of $11,000,000. Of this amount, $7,000,000 was spent before technological feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $15,000,000. During 2019, revenue of $6,000,000 was recognized. Required:
1. Prepare a journal entry to record the 2018 development costs.
Record the 2018 development costs in a General Journal
2. Calculate the required amortization for 2019.
| Required Amortization | |
| Percentage-of-revenue method | |
| Straight-line method |
3. At what amount should the computer software costs be reported in the December 31, 2019, balance sheet?
| Balance | Sheet |
| Software development costs | |
| Less: Amortization to date | |
| Net |
Homework Answers
Add Answer to:
Early in 2018, the Excalibur Company began developing a new
software package to be marketed. The...
10 of 10 Early in year 1, the Carlbury Company began developing a new software package...
10 of 10 Early in year 1, the Carlbury Company began developing a new software package to be marketed. The project was completed in December, year 1, at a cost of $15 million. Of this amount, $10 million was spent before technological feasibility was established. Carlbury expects a useful life of five years for the new product with total revenues of $25 million. During year 2, revenue of $10 million was recognized. Required: 1. Prepare a journal entry to record...
Exercise 10-32 Software development costs [LO10-8) On September 30, 2018, Athens Software began developing a software...
Exercise 10-32 Software development costs [LO10-8) On September 30, 2018, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2019, and the program was available for release on April 30, 2019. Development costs were incurred as follows: September 30 through December 31, 2018 January 1 through February 28, 2019 March 1 through April 30, 2019 $2,370,000 970,000 570,000 Athens expects a useful life of four years for...
Check my work 17 On September 30, 2018, Athens Software began developing a software program to...
Check my work 17 On September 30, 2018, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2019, and the program was available for release on April 30, 2019. Development costs were incurred as follows: 10 points September 30 through December 31, 2018 January 1 through February 28, 2019 March 1 through April 30, 2019 $2,310,000 910,000 510,000 00:5307 eBook Athens expects a useful life of five...
11. Goodwil Basic principle is to value assets acquired using fair value of assets given other...
11. Goodwil Basic principle is to value assets acquired using fair value of assets given other than cash k. Assets such as timber tracks and mineral deposits. Early in 2021, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2021 at a cost of $6 million. Of this amount. $4 million was spent before technological feasibility was established. Excalibur expects a useful life of five vears for the new product with...
During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures...
During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $5,400,000, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $8,640,000. The package is expected to be successfully marketable for five years, and the total revenues over the life of the product are estimated...
Axcel Software began a new development project in 2017. The project reached technological feasibility on June...
Axcel Software began a new development project in 2017. The project reached technological feasibility on June 30, 2018, and was available for release to customers at the beginning of 2019. Development costs incurred prior to June 30, 2018, were $4,100,000 and costs incurred from June 30 to the product release date were $2,250,000. The 2019 revenues from the sale of the new software were $4,500,000, and the company anticipates additional revenues of $6,000,000. The economic life of the software is...
Accounting for Software Development Costs During 2020, PC Software Inc. developed a new personal computer database...
Accounting for Software Development Costs During 2020, PC Software Inc. developed a new personal computer database management software package. Total experiditures on the project were $4,800,000, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $7,680,000. The package is expected to be successfully marketable for five years, and the total revenues over the life...
Axcel Software began a new development project in 2017. The project reached technological feasibility on June...
Axcel Software began a new development project in 2017. The project reached technological feasibility on June 30, 2018, and was available for release to customers at the beginning of 2019. Development costs incurred prior to June 30, 2018, were $4,700,000 and costs incurred from June 30 to the product release date were $1,800,000. The 2019 revenues from the sale of the new software were $4,500,000, and the company anticipates additional revenues of $6,500,000. The economic life of the software is...
Accounting for Software Development Costs During 2020, PC Software Inc. developed a new personal computer database...
Accounting for Software Development Costs During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were 54,800,000, of which 40% occurred am the technological feasibility of the product had been established. The product was completed and offered for sale on Janoary 1, 2021. During 2021, revenues from sales of the product tota $7,680,000. The package is expected to be successfully marketable for five years, and the total revenues over the life...
Exercise 10-32 (Algo) Software development costs [LO10-8] On September 30, 2021. Athens Software began developing a sof...
Exercise 10-32 (Algo) Software development costs [LO10-8] 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 January 1 through February 28, 2022 March 1 through April 30, 2022 $2,310,000 910,000 510,000 Athens expects a useful life of five years...
10 of 10 Early in year 1, the Carlbury Company began developing a new software package to be marketed. The project was completed in December, year 1, at a cost of $15 million. Of this amount, $10 million was spent before technological feasibility was established. Carlbury expects a useful life of five years for the new product with total revenues of $25 million. During year 2, revenue of $10 million was recognized. Required: 1. Prepare a journal entry to record...
Exercise 10-32 Software development costs [LO10-8) On September 30, 2018, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2019, and the program was available for release on April 30, 2019. Development costs were incurred as follows: September 30 through December 31, 2018 January 1 through February 28, 2019 March 1 through April 30, 2019 $2,370,000 970,000 570,000 Athens expects a useful life of four years for...
Check my work 17 On September 30, 2018, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2019, and the program was available for release on April 30, 2019. Development costs were incurred as follows: 10 points September 30 through December 31, 2018 January 1 through February 28, 2019 March 1 through April 30, 2019 $2,310,000 910,000 510,000 00:5307 eBook Athens expects a useful life of five...
11. Goodwil Basic principle is to value assets acquired using fair value of assets given other than cash k. Assets such as timber tracks and mineral deposits. Early in 2021, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2021 at a cost of $6 million. Of this amount. $4 million was spent before technological feasibility was established. Excalibur expects a useful life of five vears for the new product with...
Accounting for Software Development Costs During 2020, PC Software Inc. developed a new personal computer database management software package. Total experiditures on the project were $4,800,000, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $7,680,000. The package is expected to be successfully marketable for five years, and the total revenues over the life...
Axcel Software began a new development project in 2017. The project reached technological feasibility on June 30, 2018, and was available for release to customers at the beginning of 2019. Development costs incurred prior to June 30, 2018, were $4,700,000 and costs incurred from June 30 to the product release date were $1,800,000. The 2019 revenues from the sale of the new software were $4,500,000, and the company anticipates additional revenues of $6,500,000. The economic life of the software is...
Accounting for Software Development Costs During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were 54,800,000, of which 40% occurred am the technological feasibility of the product had been established. The product was completed and offered for sale on Janoary 1, 2021. During 2021, revenues from sales of the product tota $7,680,000. The package is expected to be successfully marketable for five years, and the total revenues over the life...
Exercise 10-32 (Algo) Software development costs [LO10-8] 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 January 1 through February 28, 2022 March 1 through April 30, 2022 $2,310,000 910,000 510,000 Athens expects a useful life of five years...
Most questions answered within 3 hours.
-
I propose to you a game. You roll 2 dice. If the sum of the
numbers...
asked 44 minutes ago -
Select the most likely lattice types for each of the following
salts: (a) BeF2; (b) CaO;...
asked 49 minutes ago -
a
ball is thrown downward with velocity of 10m/s. calculate the final
velocity if it reaches...
asked 1 hour ago -
How many grams of ice at -15°C must be added to 705 grams of
water that...
asked 2 hours ago -
2. Balance sheet
The balance sheet provides a snapshot of the financial condition
of a company....
asked 3 hours ago -
In week 1 of the chemical equilibrium experiment, you and your
lab team will create a...
asked 3 hours ago -
Identify and describe five (5) characteristics of a good KM
measurement system. Be sure to include...
asked 3 hours ago -
What are at least five (5) workplace wellness best practices for
a successful wellness program? Explain...
asked 3 hours ago -
A pharmaceutical company is testing a new drug. Of the 110
people that received the drug,...
asked 4 hours ago -
Which of the following is NOT a mechanism for gene
regulation?
a. Phase variation in DNA....
asked 4 hours ago -
Which of the following is being applied when, under certain
conditions, the value recorded for an...
asked 4 hours ago -
Describe the role of the three components of connective
tissue. In what ways does a connective...
asked 4 hours ago