$8$

In $2024,$ Starsearch Corporation began work on three research and development projects. One of the projects was completed and

commercial production of the developed product began in December. The company's fiscal year$-$end is December $31.$ All of the

following $2024$ expenditures were included in the R&D expense account:

A total of $$260,000$ of equipment was purchased solely for use in one of the projects. After the project is completed, the equipment

will be abandoned. The remaining $$460,000$ in equipment will be used on future R&D projects. The useful life of equipment is five

years. Assume that all of the equipment was acquired at the beginning of the year.

Required:

Prepare journal entries, reclassifying amounts in R&D expense, to reflect the appropriate treatment of the expenditures.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record entry to capitalize the cost of equipment to be used on future projects

incorrectly charged to R&D expense.

Note: Enter debits before credits.