In 2019, eGames spent $8,000,000 developing new software. Of this amount, $5,300,000 was spent before July 2019when

Question:

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 marketed to consumers beginning in September 2019. eGames estimates total revenue of $20,000,000 to be earned during the software’s three-year life (calculated from the September 1 product release date). During 2019, revenue of $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, if any.
3. Next Level What is the justification for treating software development costs differently from R&D costs?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 80% (10 reviews)

1 Research and Development Expense 5300000 Cash 5300000 Software Development Costs 2700000 Cash 8000...View the full answer

Answered By

Tobias sifuna

I am an individual who possesses a unique set of skills and qualities that make me well-suited for content and academic writing. I have a strong writing ability, allowing me to communicate ideas and arguments in a clear, concise, and effective manner. My writing is backed by extensive research skills, enabling me to gather information from credible sources to support my arguments. I also have critical thinking skills, which allow me to analyze information, draw informed conclusions, and present my arguments in a logical and convincing manner. Additionally, I have an eye for detail and the ability to carefully proofread my work, ensuring that it is free of errors and that all sources are properly cited. Time management skills are another key strength that allow me to meet deadlines and prioritize tasks effectively. Communication skills, including the ability to collaborate with others, including editors, peer reviewers, and subject matter experts, are also important qualities that I have. I am also adaptable, capable of writing on a variety of topics and adjusting my writing style and tone to meet the needs of different audiences and projects. Lastly, I am driven by a passion for writing, which continually drives me to improve my skills and produce high-quality work.

5.00+ 1+ Reviews 10+ Question Solved

Related Book For book-img-for-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1337788281

3rd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

See More Books

Question Posted: Jul 09, 2019 12:40 PM

See More Questions

In 2019, eGames spent $8,000,000 developing new software. Of this amount, $5,300,000 was spent before July 2019when

Question:

Step by Step Answer:

1 Research and Development Expense 5300000 Cash 5300000 Software Development Costs 2700000 Cash 8000...View the full answer

Intermediate Accounting Reporting and Analysis

Related Video

Students also viewed these Business questions