On August 1, 2021, Reliable Software began developing a software program to allow individuals to customize their investment portfolios. Technological feasibility was established on January 31, 2022, and the program was available for release on March 31, 2022. Development costs were incurred as follows:
August 1 through December 31, 2021 $ 6,300,000
January 1 through January 31, 2022 1,200,000
February 1 through March 31, 2022 1,600,000
Reliable expects a useful life of five years for the software and total revenues of $8,000,000 during that time. During 2022, revenue of $2,000,000 was recognized.
1. Prepare the journal entries to record the development costs in 2021 and 2022.
2. Calculate the required amortization for 2022.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On August 1, 2021, Reliable Software began developing a software program to allow individuals to customize their investment portfolios. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Performance of which activities are most likely to improve in front of an audience?
Answers (1)
Is it reasonable to assume that treasury bonds will provide higher returns in recessions than in booms?
Answers (2)
In a competitive market, no single producer can influence the market price because many other sellers are offering a product that is essentially identical. consumers have more influence over the market price than producers do.
Answers (1)
jasper Corp. converts $1,000,000 into euros when the exchange rate is $1 = €0.75. After three months, the company converts this back into dollars when the exchange rate is $1 = €0.80. What is the outcome of this transaction?
Answers (1)
Alexis wants to make online purchases, but she is unsure about the e-commerce model. Which disadvantage of e-commerce is dissuading Alexis from making online purchases? A. possibility of higher price of products B. possibility of identity theft C.
Answers (1)
New Questions in Business
a customer asks an agent for the current market value of his stock portoflio. the stock market has been dropping sharly today and the agent gives the customer the most recent valuation that he has, which is based on yesterays closing prices.
Answers (1)
Which of the following is an advantage of a sole proprietorship? Group of answer choices a. It has limited liability for the debts incurred by the business. b. It is unaffected by the death or withdrawal of its owner. c. It is hard to dissolve.
Answers (1)
Describe the four types of returns: 1. interest 2. dividends 3. rents 4. capital gains
Answers (1)
Measures of central tendency and variability are calculated to describe the nature of charitable giving each year. These figures are computed for the "average" American citizen. Which of these is a possible value for the variance in dollars given? A.
Answers (1)
On January 1, 2020, Martinez Company makes the two following acquisitions. 1. Purchases land having a fair value of $330,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $483,153. 2.
Answers (1)