6 Current Attempt in Progress Cheyenne Industries has the following patents on its December 31, 2024, balance sheet Patent Item 1 Patent A Patent B Patent C Initial Cost 2 $44,268 $17,040 $22,560 Year 2026 2027 The following events occurred during the year ended December 31, 2025 1 Research and development costs of $247,000 were incurred during the year Patent D was purchased on July 1 for $37,848. This patent has a useful life of 9¹/2 years. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value may have occurred at December 31, 2025. The controller for Cheyenne estimates the expected future cash flows from Patent B will be as follows Date Acquired 3/1/21 7/1/22 9/1/23 Expected Future Cash Flows Useful Life at Date Acquired 17 years 10 years 4 years $2,200 2/200

6 Current Attempt in Progress Cheyenne Industries has the following patents on its December 31, 2024, balance sheet Patent Item 1 Patent A Patent B Patent C Initial Cost 2 $44,268 $17,040 $22,560 Year 2026 2027 The following events occurred during the year ended December 31, 2025 1 Research and development costs of $247,000 were incurred during the year Patent D was purchased on July 1 for $37,848. This patent has a useful life of 9¹/2 years. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value may have occurred at December 31, 2025. The controller for Cheyenne estimates the expected future cash flows from Patent B will be as follows Date Acquired 3/1/21 7/1/22 9/1/23 Expected Future Cash Flows Useful Life at Date Acquired 17 years 10 years 4 years $2,200 2/200

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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Required information Skip to question [The following information applies to the questions displayed below.] In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year $ 2,016,000 $2,808,000 $2,613,600 Estimated costs to complete as of year-end 5, 184,000 2,376, 000 0 Billings during the year 2, 180,000 2,644,000 5, 176,000 Cash collections during the year 1,890,000 2,500,000 5,610,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the…
Question No. 17
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