# Analyzing Independent Transactions Consider each of the transactions below independently. All expenditures were made in cash.1. **PC Software Inc. Database Development (2020)** - Developed a new personal computer database management software package. - Total expenditures: $300,000 - 30% of expenditures occurred before technological feasibility was established.2. **Xon Corporation Plumbing Overhaul** - Paid $50,000 to complete the overhaul of the plumbing system. - Old costs are unknown.3. **The Johnson Company Machine Disposal** - Disposed of an old machine with: - Original cost: $8,000 - Book value: $4,000 - Received: $3,000## Required TaskPrepare journal entries for each transaction.**Note:** Organize your journal entries in a table format as shown below:| Date | Account Titles | Debit | Credit ||------|----------------|-------|--------|| 1 | Cash | 10,000| || | Sales Revenue | | 10,000 |

Cost charge in P&L=300000*30%=90000

Answered: Consider each of the transactions below…

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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Using the information in the following table , what is the depreciation expense per year created by the project? Dunaway Industries is evaluating the idea of expanding their production facility in Cobb County The CFO gathered the following data. Dunaway Industries spent $ 500,000 researching other sites for their expansion. The equipment needed for the expansion will cost $ 25,600,000 fully installed . The equipment will be depreciated over 20 years to a salvage value of $ 1,000,000 . Dunaway Industries uses straight -line depreciation . If Dunaway accepts the project , the company will sell the equipment for salvage value ( i.e.$ 1,000,000 ) at the end of the life of the project . If Dunaway Industries adds the new equipment , sales are expected to increase by 17,400,000 and costs are expected to increase by $ 10,000,000 . The appropriate tax rate for Dunaway Industries is 30% The capital of the firm includes 70% of equity and 30% of debt . Dunaway Industries recently issued a bond…
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How to calculate the Amortization Expense?
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