On August 1, 2022, The STUVWXYZ Corporation paid P4,200,000 to Atras-Zhinigang Manufacturing Co. for the development of a vaccine in a period of two years. The amount paid was debited to R & Dexpense (expense method). On December 31, 2022, the company accountant prepared the covering adjusting entry. Prepare the correcting entry (if any) if the adjusting entry made by the accountant on December 31, 2022 is as follow: a. R&D expense 875,000 Prepaid R & D 875,000 b. Prepaid R & D 2,100,000 R&D expense Income from R & D adjustment 2,000,000 c. Prepaid R & D 3,325,000 Accrued R & D Expense 3,325,000 d. Prepaid R & D 875,000 R&D expense 875,000 No entry made
On August 1, 2022, The STUVWXYZ Corporation paid P4,200,000 to Atras-Zhinigang Manufacturing Co. for the development of a vaccine in a period of two years. The amount paid was debited to R & Dexpense (expense method). On December 31, 2022, the company accountant prepared the covering adjusting entry. Prepare the correcting entry (if any) if the adjusting entry made by the accountant on December 31, 2022 is as follow: a. R&D expense 875,000 Prepaid R & D 875,000 b. Prepaid R & D 2,100,000 R&D expense Income from R & D adjustment 2,000,000 c. Prepaid R & D 3,325,000 Accrued R & D Expense 3,325,000 d. Prepaid R & D 875,000 R&D expense 875,000 No entry made
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 24E
Related questions
Question
give solutions and explain it
Expert Solution
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
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
where is the correcting entry of the following?
Solution
by Bartleby Expert
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
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning