User Account

All Pages

Measure the carrying amount of the development cost of plan

Assignment Help Financial Accounting
Reference no: EM133010709

Entity A is an information technology company listed in Hong Kong.

  1. It provides inforamtion technology services to different types of customers. To prepare for the company development, Entity A planned to spend more expenditures on research and devdelopment in coming year.
  2. Entity A carries out a research and development project on 1 July 2019 called Plan X.
  3. In the year ended 30 June 2020, Entity A incurred costs in relation to Plan X of $6,246,000. These were incurred at the same amount each month up to February 2020, when Plan X was completed.
  4. Plan X had been confirmed as feasible on 1 November 2019.
  5. The product produced by Plan X went on sale on 1 May 2020.
  6. The product produced by Plan X was expected to have a useful life of 50 years.
  7. The end of the reporting period is 30 June. Amortisation is measured monthly.

REQUIRED:

Problem 1: Measure the carrying amount of the development cost of Plan X on 30 June 2020.

Reference no: EM133010709

Questions Cloud

Rules for success are written outside the organization : It has been said that the rules for success are written outside the organization, but competitive advantage must be found within the organization. Explain this
Explain the dilemma that most unions face : For this first Discussion, explain the dilemma that most unions face as to why they are losing membership in their ranks in recent years. Research an article th
Prepare journal entries to record the transactions of entity : Prepare journal entries to record the transactions of Entity A on 1 May 2020, 30 June 2020, 15 October 2020, 15 November 2020, 1 December 2020
What is the Black and Scholes value of this option : A stock trades for $45 per share. A call option on that stock has a strike price of $50. What is the Black and Scholes value of this option
Measure the carrying amount of the development cost of plan : Measure the carrying amount of the development cost of Plan X on 30 June 2020. Entity A is an information technology company listed in Hong Kong.
Prepare a tabular analysis of the april transactions : Prepare a tabular analysis of the April transactions. Quintin Smith opened a veterinary business on March. On March 31, the balance sheet showed Cash
Make measure the amount of the items on december : Entity A is a local construction company. According to relevant accounting standards, measure the amount of the items below on 31 December 2020.
Make a measure the amount that will be charged to statement : Measure the amount that will be charged to Statement of Profit or Loss for the year ended 30 September 2021 in respect of research and development costs.
Prepare journal entries to record the transactions : Issue of ordinary share capital 20,000 shares, 50 per share. Reissue of treasury share 3,020 shares 40 per share. Prepare journal entries to record transactions

Reviews

Write a Review

Financial Accounting Questions & Answers

  How the choice of depreciation method affects

Provide recommendations and justifications of which depreciation method(s) are appropriate in this case. Explain how the choice of depreciation method affects reported profits.

  How many shares of common stock would be outstanding

According to Twitter's amended S-1 filed November 4, 2013, approximately how many shares of common stock would be outstanding after the offering

  Which of the costs or expenses should be considered

Which of the following costs or expenses should be considered in the new projects' cash flows? An existing building to house the new project.

  Find net sales for the two months ended december

Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31.

  What was net capital spending in 2015

The company's 2015 statement of comprehensive income showed a depreciation expense of $345,000. What was net capital spending in 2015?

  What is the estimated pension liability as of December

The projected salary over three years (2020, 2021, 2022) are P500,000, P600,000, and P720,000, What is the estimated pension liability as of December

  What amount of cash will each partner receive for mathilda

The firm owes Kathryn $50,000. Upon liquidation, $450,000 is available for distribution to the partners. What amount of cash will each partner receive?

  What amount would have to deposit

She has decided to make one lump-sum payment on her 36th birthday to cover her retirement needs. What amount would she have to deposit?

  Role in changing depreciation methods

ACC701 - Financial Accounting Assignment - role in changing depreciation methods, stakeholders and the impact of AASB116?

  Determine how many units were started during april

During April, 20,600 units were completed and as of April 30, 5,320 units remained in production. How many units were started during April?

  Explain concept of setting in a financial planning practic

Explain concept of "setting" in a financial planning practice encompasses the dimensions of. One of the advantages of a comprehensive plan is that it

  Prepare the worksheet consolidation entry or entries needed

Frazer Corporation purchased 60 percent of Minnow Corporation’s voting common stock on January 1, 20X1. On December 31, 20X5, Frazer received $237,000 from Minnow for a truck Frazer had purchased on January 1, 20X2, for $297,000. Prepare the workshee..

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd