Problem 10-11 Research and development [LO10-8 In 2018, 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 2018 expenditures were Included in the R&D expense account Salaries and vages fors Lab research Quality control during eommercial production Lab research Construction of preproduction prototype $ 300,000 160,000 20,000 ign and construction of preproduction prototype Materials and supplies consumed for 60,000 30,000 600,000 40,000 120,000 1,330,000 Purchase of equipment Patent filing and legal fees for completed project Payments to others for researclh Total $200,.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 $400,000 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. (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 abandoned. The remaining $400,000 In equlpment 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 approprlate treatment of the expenditures. (If no entry ls required for a transaction/event, select "No Journal entry required" in the first account fileld.) View transaction list 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 eredits Event Record entry Clear entry View general journal Required: Prepare journal entries, reclasslfying amounts in R&D expense, to reflect the app required for a transaction/event, select "No journal entry required" in the first View transaction list X: Import a new IIst 1 Record entry to capitalize the cost of equipment to be used on future projects incorrectly charged to R&D expense projects 2 Record depreciation on equipment used in R&D projects. 3 Record entry to capitalize filing and legal fees for patent incorrectly charged to R&D expense. Credit 4 Record the entry to reclassify the expenditures made for quality control during commercial production assuming the costs would be treated as manufacturing overhead. Note : journal entry has been entered Record entry Clear entry View gene Prev8 of 8 MacBook
