13. A startup technology company is in business for the purpose of producing and selling hardware and software. During the current year, the company paid $56,000 related to coding software, $92,000 for planning and design of software, $45,000 for production of software master copies, $120,000 for materials related to discovery of new hardware, $200,000 for equipment to be used for research over a 5 year life, $20,000 for patent filing fees, $90,000 for testing software, $95,000 for salary to the patent attorney, $100,000 production costs related to software products, $25,000 to market the software, $250,000 for salaries working to develop the hardware, and $55,000 for research salaries working on a new improved version of a currently selling product. Make the journal entry(ies) to record the above expenditures for the company.

13. A startup technology company is in business for the purpose of producing and selling hardware and software. During the current year, the company paid $56,000 related to coding software, $92,000 for planning and design of software, $45,000 for production of software master copies, $120,000 for materials related to discovery of new hardware, $200,000 for equipment to be used for research over a 5 year life, $20,000 for patent filing fees, $90,000 for testing software, $95,000 for salary to the patent attorney, $100,000 production costs related to software products, $25,000 to market the software, $250,000 for salaries working to develop the hardware, and $55,000 for research salaries working on a new improved version of a currently selling product. Make the journal entry(ies) to record the above expenditures for the company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Long Term Assets: , #13

13. A startup technology company is in business
for the purpose of producing and selling hardware
and software. During the current year, the
company paid $56,000 related to coding software,
$92,000 for planning and design of software,
$45,000 for production of software master copies,
$120,000 for materials related to discovery of new
hardware, $200,000 for equipment to be used for
research over a 5 year life, $20,000 for patent
filing fees, $90,000 for testing software, $95,000
for salary to the patent attorney, $100,000
production costs related to software products,
$25,000 to market the software, $250,000 for
salaries working to develop the hardware, and
$55,000 for research salaries working on a new
improved version of a currently selling product.
Make the journal entry(ies) to record the
above expenditures for the company.

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