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Bridgeport Inc., a private company that applies ASPE, incurred $15,900 in materials and $11,600 in direct labour costs between January and March 2023 to develop a new product. In May 2023, the criteria required to capitalize development costs were met. A further $55,900 was spent for materials, $14,300 for direct labour costs, $1,500 for borrowing costs, and $74,500 for directly related legal fees. Prepare the appropriate journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

Bridgeport Inc., a private company that applies ASPE, incurred $15,900 in materials and $11,600 in direct labour costs between January and March 2023 to develop a new product. In May 2023, the criteria required to capitalize development costs were met. A further $55,900 was spent for materials, $14,300 for direct labour costs, $1,500 for borrowing costs, and $74,500 for directly related legal fees. Prepare the appropriate journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

FINANCIAL ACCOUNTING
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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Prepare the journal entry if Bridgeport were a public company following IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No enty" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Transcribed Image Text:Prepare the journal entry if Bridgeport were a public company following IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No enty" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Bridgeport Inc., a private company that applies ASPE, incurred $15,900 in materials and $11,600 in direct labour costs between January and March 2023 to develop a new product. In May 2023, the criteria required to capitalize development costs were met. A further $55,900 was spent for materials, $14,300 for direct labour costs, $1,500 for borrowing costs, and $74,500 for directly related legal fees. Prepare the appropriate journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Credit Account Titles and Explanation (Bridgeport chooses to expense all costs.) (Bridgeport chooses to capitalize all costs.) Debit
Transcribed Image Text:Bridgeport Inc., a private company that applies ASPE, incurred $15,900 in materials and $11,600 in direct labour costs between January and March 2023 to develop a new product. In May 2023, the criteria required to capitalize development costs were met. A further $55,900 was spent for materials, $14,300 for direct labour costs, $1,500 for borrowing costs, and $74,500 for directly related legal fees. Prepare the appropriate journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Credit Account Titles and Explanation (Bridgeport chooses to expense all costs.) (Bridgeport chooses to capitalize all costs.) Debit
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