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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Consider each of the transactions below independently. All of the expenditures were made in cash.
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.
Required: Prepare all necessary journal entries to record each of the above transactions.
Note: You may create a table as follows to organize your journal entries.
Date
Account titles
Debit
Credit
Cash
10,000
10,000
Sales Revenue
Transcribed Image Text:Consider each of the transactions below independently. All of the expenditures were made in cash. 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. Required: Prepare all necessary journal entries to record each of the above transactions. Note: You may create a table as follows to organize your journal entries. Date Account titles Debit Credit Cash 10,000 10,000 Sales Revenue
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