Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
During 2012, Robin Wright Tool Company purchased a building site for its proposed research and development laboratory at a cost of $60,000. Construction of the building was started in 2012. The building was completed on December 31, 2013, at a cost of $320,000 and was placed in service on January 2, 2014. The estimated useful life of the building for depreciation purposes was 20 years. The straight-line method of depreciation was to be employed, and there was no estimated residual value.Management estimates that about 50% of the projects of the research and development group will result in long-term benefits (i.e., at least 10 years) to the corporation. The remaining projects either benefit the current period or are abandoned before completion. A summary of the number of projects and the direct costs incurred in conjunction with the research and development activities for 2014 appears below.
Number of Projects
Salaries and Employee Benefits
Other Expenses (excluding Building Depreciation Charges)
Completed projects with long-term benefits
15
$?90,000
$50,000
Abandoned projects or projects that benefit the current period
10
??65,000
?15,000
Projects in process-results indeterminate
?5
??40,000
?12,000
Total
30
$195,000
$77,000
Upon recommendation of the research and development group, Robin Wright Tool Company acquired a patent for manufacturing rights at a cost of $88,000. The patent was acquired on April 1, 2013, and has an economic life of 10 years.
Instructions
If generally accepted accounting principles were followed, how would the items above relating to research and development activities be reported on the following financial statements?
The company's income statement for 2014.
The company's balance sheet as of December 31, 2014.
Be sure to give account titles and amounts, and briefly justify your presentation.
(CMA adapted)
Prepare store ledger card under FIFO method by using perpetual inventory system.
The bonds mature on January 1, 2015. Novotna Company uses the effective-interest method to amortize discount or premium. On January 1, 2012, Novotna Company sold the bonds for $370,726 after receiving interest to meet its liquidity needs.
Using the data for home selling prices attached, test a realtor's claim that the average age of all homes in the area from which the random sample is drawn from is less than 30 years. Assume the distribution of ages of homes follow an approximatel..
You have a small tax accounting preparation and bookkeeping practice. A new client enters your office and places a box of receipts and bank statements on your desk and says that she would like to have a set of financials prepared and tax retur..
Assume a business combination took place at December 31, 2009. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct cos..
rice inc. manufactures lawn mowers and garden tractors. lawn mowers are relatively simple to produce and are made in
Mutual Funds What is the function of a mutual fund? Why are mutual funds popular among investors? How does a money market mutual fund differ from a stock or bond mutual fund?
hickory grill company manufactures two types of grillsthe gas cooker and charcoal smoker. the cooker is a premium
Why do you think Toyota is expanding so aggressively outside of Japan instead of focusing more on manufacturing in Japan and exporting to other countries?
the financial accounting standards board issued accounting guidance to clarify accounting methods and procedures with
Should NaviNow account for the contingent payments promised to the former owners of Traffic Eye as consideration transferred in the acquisition or as compensation expense to employees?
assuming a company uses the indirect method to report cash flows from operating activities indicate where each of the
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd