Prepare journal entries for research and development costs

Assignment Help Accounting Basics
Reference no: EM132432191

Question - Trecek Corporation incurs research and development costs of $666,000 in 2017, 30 percent of which relate to development activities subsequent to IAS 38 criteria having been met that indicate an intangible asset has been created. The newly developed product is brought to market in January 2018 and is expected to generate sales revenue for 10 years.

Assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.

Required:

1. Prepare journal entries for research and development costs for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.

2. Prepare the entry(ies) that Trecek would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS.

Reference no: EM132432191

Questions Cloud

Add the results of the array together : How do you add a function in an array to add the results of the array together? Also how do you alter the sort part of the function to sort from a different cat
What changed for when had to recalculate the budget : What does it mean to you that your job may not monetarily provide you with everything you need or want? How will you resolve this?
Present the adjustment transaction in a journal : Present the adjustment transaction in a journal. Indicate the type of adjustment that is carried out and present the daily transaction
How credible are the information sources : How is the information in the article harvested and conveyed? What media channels are used and how does this use link back to the author and intended audience.
Prepare journal entries for research and development costs : Prepare journal entries for research and development costs for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS
Journalize the adjusting entry on December : On November 1, Baker Company received $29,100 for six months of rent in advance. Journalize the adjusting entry on December 31
Classifications of Life-Span Development Assignment : Classifications of Life-Span Development Assignment help and solutions:- Is the authors' young and middle adulthood classification a useful one?
Determine the amount of depreciation expense for the years : Perdue Company purchased equipment on April 1 for $32,670. Determine the amount of depreciation expense for the years ended December 31
Compute the total cost of borrowing for these bonds : Pharoah Company issued $610,000 of 5-year, 5% bonds at 95 on January 1, 2020. Compute the total cost of borrowing for these bonds

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

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

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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