Question

Intructions Closer & Co. incurred and paid the following costs for internal-use software: . $16,000 in the preliminary stage of development • $17,000 in external direct material and service costs used in developing the internal-use software • $22,000 in payroll costs for employees working on the project • $4,300 in interest costs while developing the software Required: Prepare Closer's initial journal entry(s) to record its internal-use software. General Journal Prepare the journal entries to record the company's internal-use software costs on December 31. Additional Instructions How does grading work? PAGE 1 GENERAL JOURNAL Score: 43/51 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Dec 31 59,300.00 Software Development Costs Cash Software Development Expense 59,300.00 Dec. 31 59,300.00 Cash 59,300.00

Answer 1

Prepare journal entries as follows: Credit Date Dec. 31 Debit $43,300 Account Title Software Development costs Cash ($17,000 + $ 22,000+ $4,300) (To record the sofware development cost) $43,300 Dec. 31 $16,000 $16.000 Software Development expense Cash (To record the cost incurred for the preliminary stage for development)