Early in 2024, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2024 at a cost of $15 million. Of this amount, $11 million was spent before technological feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $20 million. During 2025, revenue of $6 million was recognized. Required: Prepare a journal entry to record the 2024 development costs.
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- 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 AOn September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows: September 30 through December 31, 2021 January 1 through February 28, 2022 March 1 through April 30, 2022 Athens expects a useful life of five years for the software and total revenues of $6,500,000 during that time. During 2022, revenue of $1,170,000 was recognized. Required: Prepare a journal entry in each year to record development costs for 2021 and 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the development costs for 2021. Note: Enter debits before credits. Date 2021 $2,280,000 880,000 480,000 General Journal Debit CreditA company began a new software development project in 2023. The project reached technological feasibility on June 30, 2024, and was available for release to customers at the beginning of 2025. Development costs incurred prior to June 30, 2024, were $3,260,000 and costs incurred from June 30, 2024, to the product release date were $1,460,000. The economic life of the software is estimated at four years. For what amount will software be capitalized in 2024?
- 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.Micropolis Technology began a new development project in 2020. The project reached technological feasibility on September 1, 2021, and was available for release to customers at the beginning of 2022. Development costs incurred prior to September 1, 2021, were $4,560,000, and costs incurred from June 30 to the product release date were $1,920,000. The 2022 revenues from the sale of the new software were $3,950,000, and the company anticipates additional revenues of $11,850,000. The economic life of the software is estimated at three years. Amortization of the software development costs for the year 2022 would be:During 2024, a software company incurred development costs of $2,000,000 related to a new software project. Of this amount, $400,000 was incurred after technological feasibility was achieved. The project was completed in the middle of the year and the product was available for release to customers on July 1. Revenues from the sale of the new software in 2024 were $500,000 and the company anticipated future additional revenues of $4,500,000. The economic life of the software is estimated at four years. What is amortization in 2024?
- 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?On August 1, 2024, Reliable Software began developing a software program to allow individuals to customize their investment portfolios. Technological feasibility was established on January 31, 2025, and the program was available for release on March 31, 2025. Development costs were incurred as follows: August 1 through December 31, 2024 January 1 through January 31, 2025 February 1 through March 31, 2025 $ 6,300,000 1,200,000 1,600,000 Reliable expects a service life of five years for the software and total revenues of $8,000,000 during that time. During 2025, revenue of $2,000,000 was recognized. Required: 1. Prepare the journal entries to record the development costs in 2024 and 2025. 2. Calculate the required amortization for 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record the development costs in 2024 and 2025. Note: If no entry is required for a transaction/event, select "No journal entry…Consider each of the transaction below independently. All expenditures were made in cash 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. Prepare all necessary journal entries to record each the transaction. Use this format: Date Account Titles DR CR
- Dempsey Ltd’s year end is 30 September 2023. Dempsey Ltd commenced the development stage of a project to produce a new pharmaceutical drug on 1 January 2023. Expenditure of $40,000 per month was incurred until the project was completed on 30 June 2023 when the drug went into immediate production. The directors became confident of the project’s success on 1 March 2023. The drug is expected to generate benefits for 5 years. What is the carrying amount of any intangible asset recognised in respect of the project at 30 September 2023 and what is the total amount Dempsey Ltd will charge to profit or loss for the year ended 30 September 2023?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 $6 million. Of this amount, $4 million was spent before technological feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $10 million. During 2022, revenue of $3 million was recognized.Required:Prepare a journal entry to record the 2021 development costs.In 2019, eGames spent $8,000,000 developing new software. Of this amount,$5,300,000 was spent before July 2019—when technological feasibility was established. The product was marketedto consumers beginning in September 2019. eGames estimates total revenue of $20,000,000 to be earnedduring the software’s three-year life (calculated from the September 1 product release date). During 2019, revenueof $10,000,000 was recognized.Required:1. Prepare the 2019 journal entries to record the development costs.2. Compute the amount of amortization to be recognized in 2019 and prepare the appropriate journal entry, ifany.3. Next Level What is the justification for treating software development costs differently from R&D costs?