On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows: September 30 through December 31, 2021 January 1 through February 28, 2022 March 1 through April 30, 2022 $2,280,000 880,000 480,000 Athens expects a useful life of five years for the software and total revenues of $6,500,000 during that time. During 2022, revenue of $1,170,000 was recognized. Required: Prepare a journal entry in each year to record development costs for 2021 and 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows: September 30 through December 31, 2021 January 1 through February 28, 2022 March 1 through April 30, 2022 $2,280,000 880,000 480,000 Athens expects a useful life of five years for the software and total revenues of $6,500,000 during that time. During 2022, revenue of $1,170,000 was recognized. Required: Prepare a journal entry in each year to record development costs for 2021 and 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

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On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and
spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022.
Development costs were incurred as follows:
September 30 through December 31, 2021
January 1 through February 28, 2022
March 1 through April 30, 2022
Athens expects a useful life of five years for the software and total revenues of $6,500,000 during that time. During 2022, revenue of
$1,170,000 was recognized.
Required:
Prepare a journal entry in each year to record development costs for 2021 and 2022. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
<
1
2
Record the development costs for 2021.
Note: Enter debits before credits.
Date
2021
$2,280,000
880,000
480,000
General Journal
Debit
Credit

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