Notting Hill Company incurred the following costs for R&D activities: $15,000 85,000 10,000 38,500 RE12-3 LO 12.2 Material used from inventory Equipment purchased (with cash) for R&D with no other use Depreciation on building housing multiple R&D activities Wages and salaries paid to R&D employees Prepare Notting Hill's journal entry(ies) to record its R&D. RE12-4 Hook Corp. incurred the following start-up costs, all paid in cash: LO 12.2 Legal fees $75,000 35,000 15,000 13,000 Prepare Hook's journal entry too record the start-up costs, all paid in cash. Accounting fees Promotional fees Staff training fees
Notting Hill Company incurred the following costs for R&D activities: $15,000 85,000 10,000 38,500 RE12-3 LO 12.2 Material used from inventory Equipment purchased (with cash) for R&D with no other use Depreciation on building housing multiple R&D activities Wages and salaries paid to R&D employees Prepare Notting Hill's journal entry(ies) to record its R&D. RE12-4 Hook Corp. incurred the following start-up costs, all paid in cash: LO 12.2 Legal fees $75,000 35,000 15,000 13,000 Prepare Hook's journal entry too record the start-up costs, all paid in cash. Accounting fees Promotional fees Staff training fees
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 35BE: Disposal of an Operating Asset Jolie Company owns equipment with a cost of $85,500 and accumulated...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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