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Entity Z is a newly established computer software company. During 20X4, the entity incurred and paid the following costs relating to a new computer software package that it expects to market in 20X5:
Coding costs to establish technological feasibility-300,000
Coding and testing costs after establishment of technological feasibility-100,000
Production of product masters-400,000
Entity expects total revenue of P5 million over the four-year life of the product. The entity began marketing the product in 20X5, earning revenues of P1 million during the year.
Problem 1: What are the journal entries for the costs incurred in 20X4?
Problem 2: What is the journal entry to record amortization of computer software for the year 20X5?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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