Software that are made for public sale have specific treatment for their expenses incurred. Expenses that are incurred during the time of pre technological feasibility are treated as expense while the expenses incurred after technological feasibility but before being available for sale are capitalized.
To record 1st year development cost
Software Expense Dr 10,000,000
Software- Asset Dr 5,000,000
To Bank Cr 15,000,000
(Being software expense prior to technological feasibility treated as expense and post technological feasibility capitalized)
Amortization at year 2
Depreciation Dr 1,000,000
To Software Asset Cr 1,000,000
(Being software amortized over its useful life of 5 years)
Computer software costs would be recorded at year 2
Original cost - amortization cost
5,000,000-1,000,000 = 4,00,000
10 of 10 Early in year 1, the Carlbury Company began developing a new software package...
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...
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...
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...
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...
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...
Exerclse 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: $2,310,000 910,000 510,000 September 30 through Deccember 31, 2021 January 1 through February 28, 2022. March 1 through April 30, 2022 Athens expects a useful life of five years...
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...
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...
5 polls Save A stion 1 Axcel Software began a new development project in 2020. The project reached technological feasibility on June 30, 2021. and was available for release to customers at the beginning of 2022 Development costs incurred prior to June 30, 2021 were $3,200,000, and costs incurred from June 30 to the product release date were $1.400,000. The 2022 revenues from the sale of the new software were $4,000,000, and the company anticipates additional revenues of $6.000.000. The...