During 2014, XYZ Co. spent $3.50 million discovering a technical software innovation that will change the way people use their computers. This amount included $1.50 million in salaries of research staff. XYZ Co. then spent $3.04 million on the development of the software product which includes $2.34 million in software development salaries. The product was completed by December 31, 2014 and immediately went into production generating $3.20 million in sales during 2015, its first year on the market. XYZ Co. expects the product to be useful to the company for 8 years and generate $12 million in additional future revenues. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). (a) Record all necessary journal entries for 2014. Use December 31, 2014 as the assumed date, and assume that all expenditures were made in cash. Please make sure your final answer(s) are accurate to 2 decimal places.

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Date. Account/Explanation. PR. Debit. Credit

(b) Record the amortization for the year ending December 31, 2015. XYZ Co. decided to amortize the software based on the sales generated during the year compared to the estimated total sales. Please make sure your final answer(s) are accurate to 2 decimal places.

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Date. Account/Explanation. PR. Debit. Credit