Cozy Inc. incurred and paid the following costs during the year ended December 31, 2021: Laboratory research aimed at discovery of new knowledge$200,000Costs of testing prototype and design modifications (economic viability not achieved)45,000Quality control during commercial production, including routine testing of products270,000Construction of research facilities having an estimated useful life of6 years but no alternative future use360,000 The journal entry for the total amount to be classified and expensed as research and development in 2021 is:

Journal entry is the primary step to record the transaction in the books of accounts. Research and…

Answered: Cozy Inc. incurred and paid the…

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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Cozy Inc. incurred and paid the following costs during the year ended December 31, 2021:

Laboratory research aimed at discovery of new knowledge	$200,000
Costs of testing prototype and design modifications (economic viability not achieved)	45,000
Quality control during commercial production, including routine testing of products	270,000
Construction of research facilities having an estimated useful life of 6 years but no alternative future use	360,000

The journal entry for the total amount to be classified and expensed as research and development in 2021 is:

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