Business, 19.06.2020 12:57 jobrains3220

In 2018, Starsearch Corporation began work on three research and development projects. One of the projects was completed and commercial production of the developed product began in December. The company's fiscal year-end is December 31. All of the following 2018 expenditures were included in the R&D expense account: Salaries and wages for:
Lab research 490,000
Design and construction of preproduction prototype 350,000
Quality control during commercial production 39,000
Materials and supplies consumed for:
Lab research 79,000
Construction of preproduction prototype 49,000
Purchase of equipment 790,000
Patent filing and legal fees for completed project 59,000
Payments to others for research 215,000
Total $2,071,000
$295,000 of equipment was purchased solely for use in one of the projects. After the project is completed, the equipment will be abandoned. The remaining $495,000 in equipment will be used on future R&D projects. The useful life of equipment is five years. Assume that all of the equipment was acquired at the beginning of the year
Prepare journal entries, reclassifying amounts in R&D expense, to reflect the appropriate treatment of the expenditures.

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In 2018, Starsearch Corporation began work on three research and development projects. One of the pr...

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