On September 30, 2024, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2025, and the program was available for release on April 30, 2025. Development costs were incurred as follows: September 30 through December 31, 2024 January 1 through February 28, 2025 March 1 through April 30, 2025 $ 2,220,000 820,000 420,000 Athens expects a useful life of four years for the software and total revenues of $6,000,000 during that time. During 2025, revenue of $1,200,000 was recognized. Required: Prepare a journal entry in each year to record development costs for 2024 and 2025.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
On September 30, 2024, Athens Software began developing a software program to shield personal computers from malware and
spyware. Technological feasibility was established on February 28, 2025, and the program was available for release on April 30, 2025.
Development costs were incurred as follows:
September 30 through December 31, 2024
January 1 through February 28, 2025
March 1 through April 30, 2025
$ 2,220,000
820,000
420,000
Athens expects a useful life of four years for the software and total revenues of $6,000,000 during that time. During 2025, revenue of
$1,200,000 was recognized.
Required:
Prepare a journal entry in each year to record development costs for 2024 and 2025.
Transcribed Image Text:On September 30, 2024, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2025, and the program was available for release on April 30, 2025. Development costs were incurred as follows: September 30 through December 31, 2024 January 1 through February 28, 2025 March 1 through April 30, 2025 $ 2,220,000 820,000 420,000 Athens expects a useful life of four years for the software and total revenues of $6,000,000 during that time. During 2025, revenue of $1,200,000 was recognized. Required: Prepare a journal entry in each year to record development costs for 2024 and 2025.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Intangible assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education