Early in year 1, the Carlbury Company began developing a new software package to be marketed. The project was completed in December, year 1, at a cost of $15 million. Of this amount, $10 million was spent before technological feasibility was established. Carlbury expects a useful life of five years for the new product with total revenues of $25 million. During year 2, revenue of $10 million was recognized. Required: Prepare a journal entry to record the year 1 development costs. (This includes a table/chart.
Q: None
A: Explanations: SamTanaLooYusTotalNet Profit 80,300Interest on loan from Yus (not paid) 1,000…
Q: Hondrich Company's costs per unit of producing the oil drums internally (with the old equipment) are…
A: Make or Buy Decision: Make or buy decision is the decision making for the business under which…
Q: Managing current assets involves a trade-off between two types of costs. These costs are: Group of…
A: The objective of the question is to identify the two types of costs that are involved in the…
Q: Burr Motor Company, a manufacturer of small- to medium-sized electric motors, needs additional funds…
A: Bonds : Bonds are types of financial instruments which are issued by corporations or government to…
Q: Haresh
A: Under FIFO (first-in, first-out), the assumption is that goods that were first purchased are sold…
Q: ! Required information [The following information applies to the questions displayed below.] Black…
A: Production Budget : The production budget is referred to as a written plan which determines the…
Q: Denger
A: Step 1:Computation of the unit product cost under absorption costing:Direct materials cost per…
Q: If the bonds are purchased on September 1, 2021 rather than January 2021 and the company still…
A: Bonds:The bond is the financial instrument that is used by the company to get the loan amount so…
Q: None
A: Step 1: Budgeted cash disbursement for April is the sum of cash disbursement for materials in April…
Q: Required a. Classify each activity as a unit-level, batch-level, product-level, or facility-level…
A: A cost driver is a variable that influences the expenses associated with an activity, leading to…
Q: Exercise 8-11A (Algo) Determining materials price and usage variances LO 8-6 Monique's Florals…
A: Part 2: Explanation:Step 1: Calculate the standard cost per arrangement:Standard cost per…
Q: Quatro Company issues bonds dated January 1, 2021, with a par value of $780,000. The bonds' annual…
A: The bonds are reported as the long-term liabilities in the balance sheet. The bonds are issued to…
Q: Required information [The following information applies to the questions displayed below.] Abel…
A: The objective of the question is to determine the impact on the company's profits if it discontinues…
Q: On January 1, 2013, Gloss Limited signed off on a leasing contract with MR Stationery to lease a…
A: A lease is a contractual agreement between two business organizations in provides an asset to the…
Q: None
A: ANSWER :
Q: Q. If the auditor traces a sample of receiving reports to the inventory records, the auditor is…
A: The objective of the question is to determine whether the statement is true or false. The statement…
Q: Required information [The following information applies to the questions displayed below.] The…
A: 1. Income Statement2. Balance Sheet3. Statement of Cash FlowThe first statement shows the income…
Q: Liang Company began operations in Year 1. During its first two years, the company completed a number…
A: The objective of the question is to prepare journal entries for Liang's Company for Year 1 and Year…
Q: The Amherst Company produces engine parts for car manufacturers. A new accountant intern at Amherst…
A: Part 2: Explanation:Step 1: Calculate the flexible budget columns by multiplying the budgeted…
Q: PROBLEM Preparing a Production Report: Weighted Average Cost Method [LO4 - CC12, 13, 14] CHECK…
A: The objective of this question is to prepare a production cost report using the weighted average…
Q: None
A: Part 2: Explanation:Step 1: Record labor costs and overhead costs incurred.In January, QPS…
Q: None
A: To compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024, we…
Q: None
A: Part 2: Explanation:Step 1: Calculate the total musk oil needed for each quarter. Multiply the…
Q: Matrix, Incorporated, acquired 25% of Neo Enterprises for $2,000,000 on January 1, 2024. The fair…
A: The equity method is an accounting technique an investor uses to account for its investment in…
Q: Blossom Co. is being sued for illness caused to local residents as a result of negligence on the…
A: A contingency refers to a condition or situation that has the potential to occur in the future, but…
Q: The table shows an abridged form of the Canada's balance of payments accounts. Place the various…
A: Here is the BOP of Canada: These do not belong in the BOP:1. Canadian car company buying out…
Q: FER-8= use excel The following information is available for Juddo Inc., a merchandising business in…
A: The objective of this question is to calculate the cost of goods sold (COGS) and the ending…
Q: Perdue Company purchased equipment on April 1 for $75,870. The equipment was expected to have a…
A: Depreciation is an accounting technique that accounts for the gradual loss of value caused by usage,…
Q: Compare and contrast Walmart and Target's accounting depreciation policies. Do they differ markedly?
A: The United States is home to two renowned retail giants, namely Walmart and Target. These companies…
Q: Required information [The following information applies to the questions displayed below.] As of…
A: A journal entry is a record of a fiscal sale in an account system. It includes the date of the…
Q: None
A: SALESWARE.COM, INCORPORATEDConsolidated Statement of Income(In millions, except per share…
Q: Price $800 $350 EA Costs $336 (c) Margin Margin Ratio SA (a) $147 (e) $ (f) $800 40 40
A: Margin = Price - Costs Margin ratio = (Margin/Price) aMargin = 800-336 Margin = $ 464/. bMargin…
Q: None
A: Step 1: The FIFO method states that the inventory that is purchased first should be sold first. The…
Q: Wendell's Donut Shoppe is investigating the purchase of a new $34,100 donut-making machine. The new…
A: Step 1: 1. Annual Cash Inflows: Annual savings in part-time help: $5,600Added contribution margin…
Q: ! Required information [The following information applies to the questions displayed below.] VQT…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: None
A: Current Assets : Current assets are those assets which can be easily liquidated and converted into…
Q: Which of the following
A: FIFO refers to the First in First Out in which the Inventory which is Purchased First will be Sold…
Q: None
A: Income Tax:Excluding Capital Gains: We first remove the long-term capital gain of $47,000 from his…
Q: You have been asked to test the effectiveness of Ingo Corporation's control of manually approving…
A: Testing Ingo Corporation's Purchase Approval ControlScenario:Ingo Corporation has implemented a…
Q: a. ) Calculate the current ratio. 0-00 b. ( Calculate the savings ratio. I Calculate and interpret…
A: Working Capital-Working capital is the amount of cash and other current assets a business has…
Q: Myers Corporation has the following data related to direct materials costs for November: actual…
A: To calculate the direct materials price variance, we use the following formula:Direct Materials…
Q: PROBLEM 6-10 Equivalent Units, Cost per Equivalent Unit, Assigning Costs-Weighted-Average Method…
A: Equivalent unit means where some goods remain incomplete at the end of process and we need to…
Q: Required: Use the following information to prepare a classified balance sheet for Alpha Company at…
A: We simply fill in the given format.For current assets, these are short-term assets that can be…
Q: None
A: Approach to solving the question: For better clarity of the solution, I have attached the Excel…
Q: Lily, Inc. reported net income of $2.3 million in 2022. Depreciation for the year was $161,500,…
A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…
Q: A firm in New York has USD 40 000 to invest in three projects, either Project A or Project Bor…
A: Conclusions:The projects are not equally profitable. Based on the Profitability Index (PI), Project…
Q: Give me correct answer and explanation..f
A: The objective of the question is to determine the amount of the dividend that would be paid to each…
Q: Production and sales estimates for March for Robin Co. are as follows: Estimated inventory (units),…
A: The objective of the question is to calculate the number of units expected to be manufactured in…
Q: Fit-for-Life Foods reports the following income statement accounts for the year ended December 31.…
A: INCOME STATEMENT Income Statement is one of the important financial statements of the Company.…
Q: Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of…
A: The objective of the question is to determine the adjusting entry for uncollectible accounts, the…
Step by step
Solved in 3 steps
- Early In 2021, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2021 at a cost of $13 million. Of this amount, $10 million was spent before technological feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $16 million. During 2022, revenue of $4 million was recognized. Required: Prepare a journal entry to record the 2021 development costs. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Enter your answers in whole dollar not in millions.) View transaction list Journal entry worksheet < 1 Record the 2021 development costs. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal AA piece of new equipment has been proposed by engineers to increase the productivity of a certain manual welding operation. The investment cost is $25,000, and the equipment will have a market value of $5,000 at the end of a study period of five years. Increased productivity attributable to the equipment will amount to $8,000 per year after extra operating costs have been subtracted from the revenue generated by the additional production. Evaluate the IRR of the proposed equipment. Is the investment a good one? Recall that the MARR is 20% per year.Prepare the financial section of a business case for the Cloud-Computing Case that is listed above this assignment in Canvas. Assume that this project will take eight months to complete (in Year 0) and will cost $600,000. The costs to implement some of the technologies will be $300,000 for year one and $200,000 for years two and three. Estimated benefits will start in year 1 at$400,000 and will be $600,000 for years 2 and 3. There is no benefit in year 0. Use the business case spreadsheet template (business_case_financials.xls) template provided below this assignment in Canvas to calculate the NPV, ROI, and the year in which payback occurs. Assume a 7 percent discount rate for the template. notes* Payback occurs in the first year that there is a positive value for cumulative benefits - costs. (*Negative values are presented in parenthesis) Financial Analysis for Project Name Created by: Date: Note: Change the inputs, shown in green below (i.e. interest rate, number of…
- Prepare the financial section of a business case for the Cloud-Computing Case that is listed above this assignment in Canvas. Assume that this project will take eight months to complete (in Year 0) and will cost $600,000. The costs to implement some of the technologies will be $300,000 for year one and $200,000 for years two and three. Estimated benefits will start in year 1 at $400,000 and will be $600,000 for years 2 and 3. There is no benefit in year 0. Use the business case spreadsheet template (business_case_financials.xls) template provided below this assignment in Canvas to calculate the NPV, ROI, and the year in which payback occurs. Assume a 7 percent discount rate for the template. notes* Payback occurs in the first year that there is a positive value for cumulative benefits - costs. (*Negative values are presented in parenthesis) What I have so far is attached I need to make it so Pay back occurs in year 3 where there is positive cumulative benefits - costs.A piece of new equipment has been proposed by engineers to increase the productivity of a certain manual welding operation. The investment cost is $25,000, and the equipment will have a market (salvage) value of $5,000 at the end of its expected life of five years. Increased productivity attributable to the equipment will amount to $8,000 per year after extra operating costs have been subtracted from the value of the additional production. Use a spreadsheet to evaluate the IRR of the proposed equipment. suppose that ∈=MARR = 20% per year. What is the project’s ERR, and is the project acceptable? Is the investment a good one?A piece of new equipment has been proposed by engineers to increase the productivity of a certain manual welding operation. The investment cost is $25,000, and the equipment will have a market (salvage) value of $5,000 at the end of its expected life of five years. Increased productivity attributable to the equipment will amount to $8,000 per year after extra operating costs have been subtracted from the value of the additional production. Use a spreadsheet to evaluate the IRR of the proposed equipment. Is the investment a sound one? Recall that the MARR is 20% per year
- During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $1,800,00O, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $3,000,000. The package is expected to be successfully marketable for five years, and the total revenues over the life of the product are estimated to be $10,000,000. At December 31, 2021, the carrying value of the software intangible asset is $864,000. O $504,000. O $1,080,000. O $720,000.A piece of new equipment has been proposed by engineers to increase theproductivity of a certain manual welding operation. The investment cost is $25,000, and the equipment will have a market (salvage) value of $5,000 at the end of its expected life of five years. Increased productivity attributable to the equipment will amount to $8,000 per year after extra operating costs have been subtracted from the value of the additional production. Use a spreadsheet to evaluate the IRR of the proposed equipment. Is the investment a good one? Recall that the MARR is 20% per year. Create a single spreadsheet that calculates PW, FW, AW, IRR, and ERR for the proposed investment. Assume that ∈= MARR = 20% per year. Does your recommendation change if the MARR decreases to 18%? Increases to 22%?During 2020. PC Software Inc. developed a new personal computer database management software package. To- tal expenditures on the project were $3,000,000, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $4,800,000. The package is expected to be successfully marketable for five years, and the total revenues over the life of the product are estimated to be $20,000,000. Required a. Prepare the journal entries to account for the development of this product in 2020. b. Prepare the journal entries to record the amortization of capitalized computer software development costs in 2021. c. What disclosures are required in the December 31, 2021, financial statements regarding computer software costs? d. Suppose this product were developed for internal use. How would your answers to (a), (b), and (c) change?
- A company owner has asked his accountant to research the photocopier equipment available from vendors, and to recommend the two best equipment alternatives. The company owner will decide on one piece of equipment topurchase. The fee charged for the accountant’s research was $500. The accountant’s report produced the following information: Photocopier (A) Photocopier (B) Initial cost, including installation $6,500 $ 6,000 Economic life 5 years 5 years Scrap value at end of economic life -0- -0- Initial training cost $ 500 $ 700 Annual maintenance $ 400 $ 300 Annual wage cost $12,500 $12,500 REQUIRED 1. Which photocopier should the company owner choose? Why? 2. The company owner requested your help in preparing the coming year company budget. Please, guide him to the best method and appropriate type from your perspective.The equipment will require an investment of $120,000 and an operating horizon of 7 years is estimated that integrates the life cycle of the technology and its products. As a pre-evaluation process, a market investigation was developed, which yielded an estimate of $70,000 as annual income, as well as a technical study of the operation and productivity of the production process of these devices, where a sizing of annual expenses was determined. of $45,000. Both amounts are assumed constant during the duration of the project. The company considers that if the equipment is acquired, it can be liquidated in 7 years at a net price of $40,000. The project leader sets a return of 12% per year to accept this investment, as this return is the common level for similar projects in the organization. What decision should this company make? Income 0 Expenses Investment 120000 salvage value 1 70000 45000 -120000 25000 2 70000 45000 25000 3 70000 45000 25000 70000 45000 25000 5 70000 45000 25000 6…The organization you are employed by is investing in new machinery for their warehouse. The $1.2 million initial investment is made. In year 1, the annual maintenance expenditures are $42,000, and they rise by $3,000 annually after that. In the first year, the revenues are $118,000, and they rise by 6% annually. After the equipment's 12-year useful life, a $25,000 salvage value will be obtained.a) The rate of return company made during progressb) If the desired MARR is 5%, is this a good investment?