1. During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $800,000, of which 30% occurred after the technological feasibility of the product had been established. 2. Xon Corporation paid $35,000 in 2020 for continuing, frequent, and low-cost repairs to an existing building. 3. In March, the Cleanway Laundromat bought equipment. Cleanway paid $5,000 down and signed a noninterest-bearing note requiring the payment of $30,000 in nine months. The cash price for this equipment was $34,000.
1. During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $800,000, of which 30% occurred after the technological feasibility of the product had been established. 2. Xon Corporation paid $35,000 in 2020 for continuing, frequent, and low-cost repairs to an existing building. 3. In March, the Cleanway Laundromat bought equipment. Cleanway paid $5,000 down and signed a noninterest-bearing note requiring the payment of $30,000 in nine months. The cash price for this equipment was $34,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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