Bridgeport Inc., a private company that applies ASPE, incurred $15,900 in materials and $11,600 in direct labour costs between January and March 2023 to develop a new product. In May 2023, the criteria required to capitalize development costs were met. A further $55,900 was spent for materials, $14,300 for direct labour costs, $1,500 for borrowing costs, and $74,500 for directly related legal fees. Prepare the appropriate journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

Bridgeport Inc., a private company that applies ASPE, incurred $15,900 in materials and $11,600 in direct labour costs between January and March 2023 to develop a new product. In May 2023, the criteria required to capitalize development costs were met. A further $55,900 was spent for materials, $14,300 for direct labour costs, $1,500 for borrowing costs, and $74,500 for directly related legal fees. Prepare the appropriate journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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