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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
show me the solution thanksss......
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd82ff103-49d8-411e-8235-3f9a74ece271%2Fafb94c3b-1f2d-4575-8036-efec7e7977c4%2F17lcz8l_processed.png&w=3840&q=75)
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd82ff103-49d8-411e-8235-3f9a74ece271%2Fafb94c3b-1f2d-4575-8036-efec7e7977c4%2Fj8qy6z_processed.png&w=3840&q=75)
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.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
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.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education