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tanserval138Lv1
28 Sep 2019
On August 1, 2016, Reliable Software began developing a softwareprogram to allow individuals to customize their investmentportfolios. Technological feasibility was established on January31, 2017, and the program was available for release on March 31,2017. Development costs were incurred as follows:
August 1through December 31, 2016 $6,800,000 January 1through January 31, 2017 1,250,000 February 1through March 31, 2017 1,650,000
Reliable expects a useful life of five years for the softwareand total revenues of $8,500,000 during that time. During 2017,revenue of $2,550,000 was recognized.
Required:
1. Prepare the journal entries to record the development costs in2016 and 2017. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.)
On August 1, 2016, Reliable Software began developing a softwareprogram to allow individuals to customize their investmentportfolios. Technological feasibility was established on January31, 2017, and the program was available for release on March 31,2017. Development costs were incurred as follows: |
| August 1through December 31, 2016 | $6,800,000 |
| January 1through January 31, 2017 | 1,250,000 |
| February 1through March 31, 2017 | 1,650,000 |
Reliable expects a useful life of five years for the softwareand total revenues of $8,500,000 during that time. During 2017,revenue of $2,550,000 was recognized. |
Required:
| 1. | Prepare the journal entries to record the development costs in2016 and 2017. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.) |
Patrina SchowalterLv2
28 Sep 2019