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Business, 13.10.2020 04:01, babyquinnz
On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows:
September 30 through December 31, 2021 $3,600,000
January 1 through February 28, 2022 1,500,000
March 1 through April 30, 2022 594,000
Athens expects a useful life of four years for the software and total revenues of $7,800,000 during that time. During 2022, revenue of $1,560,000 was recognized.
Required:
a. Prepare a journal entry to record the development costs in each year of 2021 and 2022.
b. Calculate the required amortization for 2022.
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Answers: 3
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