Consider the following events for Cullumber's Innovations Co. that occurred during 2024. For each event, indicate the amount of expense that should be recognized in the 2024 income statement. (Hint: Use professional judgement to estimate expense where appropriate.) (Do not leave any answer field blank. Enter 0 for amounts.) 1. Leased factory space from Whole Properties Company for a one-year period starting November 1, 2024. Six months of rent at $3,390 per month was paid in advance. Senter a dollar amount 2. Incurred $39,900 of research costs for new products. No new products were developed but management believes the research will lead to new products. Senter a dollar amount 3. Used power and water during December for manufacturing. Cullumber's will receive the bill in January 2025 and pay it in February 2025. Power and water costs totalling $62,700 have been recorded for the period from January 1 to November 30, 2024. Senter a dollar amount 4. New packaging equipment costing $54,240 was installed during November 2024. The equipment was tested in December and will be used for packaging starting in January 2025. The equipment has an estimated useful life of 4 years and an estimated residual value of $4,520. The company uses straight-line depreciation. Senter a dollar amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Consider the following events for Cullumber's Innovations Co. that occurred during 2024. For each event, indicate the
amount of expense that should be recognized in the 2024 income statement. (Hint: Use professional judgement to
estimate expense where appropriate.) (Do not leave any answer field blank. Enter 0 for amounts.) 1. Leased factory
space from Whole Properties Company for a one-year period starting November 1, 2024. Six months of rent at $3,390
per month was paid in advance. Senter a dollar amount 2. Incurred $39,900 of research costs for new products. No new
products were developed but management believes the research will lead to new products. Senter a dollar amount 3.
Used power and water during December for manufacturing. Cullumber's will receive the bill in January 2025 and pay it in
February 2025. Power and water costs totalling $62, 700 have been recorded for the period from January 1 to November
30, 2024. Senter a dollar amount 4. New packaging equipment costing $54,240 was installed during November 2024.
The equipment was tested in December and will be used for packaging starting in January 2025. The equipment has an
estimated useful life of 4 years and an estimated residual value of $4,520. The company uses straight-line depreciation.
Senter a dollar amount
Transcribed Image Text:Consider the following events for Cullumber's Innovations Co. that occurred during 2024. For each event, indicate the amount of expense that should be recognized in the 2024 income statement. (Hint: Use professional judgement to estimate expense where appropriate.) (Do not leave any answer field blank. Enter 0 for amounts.) 1. Leased factory space from Whole Properties Company for a one-year period starting November 1, 2024. Six months of rent at $3,390 per month was paid in advance. Senter a dollar amount 2. Incurred $39,900 of research costs for new products. No new products were developed but management believes the research will lead to new products. Senter a dollar amount 3. Used power and water during December for manufacturing. Cullumber's will receive the bill in January 2025 and pay it in February 2025. Power and water costs totalling $62, 700 have been recorded for the period from January 1 to November 30, 2024. Senter a dollar amount 4. New packaging equipment costing $54,240 was installed during November 2024. The equipment was tested in December and will be used for packaging starting in January 2025. The equipment has an estimated useful life of 4 years and an estimated residual value of $4,520. The company uses straight-line depreciation. Senter a dollar amount
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