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Use the following information for the next three questions: On December 1, 20x1, Entity A acquired a computed software for P1,000,000 and incurred the following costs: • Non-refundable purchase taxes of P30,000, not included in the purchase price above. • Professional fees incurred in the installation of the software, P100,000. • Modifications to the software before it was brought to the condition intended by management for use, P60,000. Costs of testing the software, P10,000. Training costs of staff who will be using the software, P200,000. Costs of updating the software after it was available for use in the condition originally intended by management, P5,000. • Administrative and other general overhead costs incurred on the acquisition and installation of the software, P15,000. The software's useful life is 5 years.

Use the following information for the next three questions: On December 1, 20x1, Entity A acquired a computed software for P1,000,000 and incurred the following costs: • Non-refundable purchase taxes of P30,000, not included in the purchase price above. • Professional fees incurred in the installation of the software, P100,000. • Modifications to the software before it was brought to the condition intended by management for use, P60,000. Costs of testing the software, P10,000. Training costs of staff who will be using the software, P200,000. Costs of updating the software after it was available for use in the condition originally intended by management, P5,000. • Administrative and other general overhead costs incurred on the acquisition and installation of the software, P15,000. The software's useful life is 5 years.

FINANCIAL ACCOUNTING
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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9. Entry to recognize the amortization expense for the current year is a. Amortization-Intangible Assets 240,000 Computer Software 240,000 b. Amortization-intangible Assets 240,000 Accumulated Amortization-Computer Software 240,000 c. Amortization-Intangible Assets 20,000 Accumulated Amortization-Computer Software 20,000 d. Amortization-Intangible Assets Computer Software 20,000 20,000 answer and explanation
Transcribed Image Text:9. Entry to recognize the amortization expense for the current year is a. Amortization-Intangible Assets 240,000 Computer Software 240,000 b. Amortization-intangible Assets 240,000 Accumulated Amortization-Computer Software 240,000 c. Amortization-Intangible Assets 20,000 Accumulated Amortization-Computer Software 20,000 d. Amortization-Intangible Assets Computer Software 20,000 20,000 answer and explanation
Use the following information for the next three questions: On December 1, 20x1, Entity A acquired a computed software for P1,000,000 and incurred the following costs: • Non-refundable purchase taxes of P30,000, not included in the purchase price above. • Professional fees incurred in the installation of the software, P100,000. • Modifications to the software before it was brought to the condition intended by management for use, P60,000. Costs of testing the software, P10,000. Training costs of staff who will be using the software, P200,000. • Costs of updating the software after it was available for use in the condition originally intended by management, P5,000. Administrative and other general overhead costs incurred on the acquisition and installation of the software, P15,000. The software's useful life is 5 years.
Transcribed Image Text:Use the following information for the next three questions: On December 1, 20x1, Entity A acquired a computed software for P1,000,000 and incurred the following costs: • Non-refundable purchase taxes of P30,000, not included in the purchase price above. • Professional fees incurred in the installation of the software, P100,000. • Modifications to the software before it was brought to the condition intended by management for use, P60,000. Costs of testing the software, P10,000. Training costs of staff who will be using the software, P200,000. • Costs of updating the software after it was available for use in the condition originally intended by management, P5,000. Administrative and other general overhead costs incurred on the acquisition and installation of the software, P15,000. The software's useful life is 5 years.
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