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.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 19RE
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54116caa-f22b-40fd-ac71-cd149350f749%2F9e0e8606-4628-448c-b993-454bba26230c%2F91w89id_processed.jpeg&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54116caa-f22b-40fd-ac71-cd149350f749%2F9e0e8606-4628-448c-b993-454bba26230c%2Ftfmb27f_processed.jpeg&w=3840&q=75)
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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