exercise 23 - 1 ACCOUNTING Exercise 23 Microsoft 2 ECONOMIC...

Info iconThis preview shows pages 1–64. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 ACCOUNTING Exercise 23 Microsoft 2 ECONOMIC EVENTS 1. Spend $20,000,000 for software development costs to get to the point of having a viable software product 2. Spend $8,000,000 for software development costs for final software refinements, after reaching the point of having a viable software product 3. Spend $2,000,000 for documentation, training materials, CD duplication and packaging 4. Sell software CDs for $40,000,000 on credit. Included in the price is $5,000,000 for customer support to be delivered over two years 5. Record software cost of sales of 1,000,000 6. Record software production cost amortization (four years anticipated sales) 7. Spend $2,000,000 for customer support costs 8. Recognize the first year of customer support revenue 9. Record depreciation on the computers…DDB method, 4 year lives 10. Sell the equipment for $2,000,000 11. Sell the treasury shares for $1,000,000 3 ECONOMIC EVENTS 12. Record payroll. Gross pay is $30,000,000. Federal withholding is $3,000,000. State withholding is $1,000,000. FICA rate is 8%. SDI rate is 1%. Employees are paid the net amount. 13. Accrue payroll taxes. FICA rate is 8%, FUTA 2%, SUTA 4%. 14. Record amortization on the patent (20 year life, straight line). 15. Accrue $1,000,000 for vacations (to be taken within one year). 16. Accrue interest on the Bonds Payable (12%) 17. Transfer Net Income / Loss to Retained Earnings. 4 JOURNAL ENTRIES 1. 2. 3. 4. 5. 5 JOURNAL ENTRIES 6. 7. 8. 9. 10. 6 JOURNAL ENTRIES 11. 12. 13. 14. 15. 7 JOURNAL ENTRIES 16. 17. 18. 19. 20. 8 Cash Reference Transaction Current Balance Debit Credit Debit Credit 400,000,000 9 Computers Reference Transaction Current Balance Debit Credit Debit Credit 20,000,000 10 Equipment Reference Transaction Current Balance Debit Credit Debit Credit 3,000,000 11 Equip Accum Depreciation Reference Transaction Current Balance Debit Credit Debit Credit 2,000,000 12 Patent Reference Transaction Current Balance Debit Credit Debit Credit 2,000,000 13 Bonds Payable Reference Transaction Current Balance Debit Credit Debit Credit 30,000,000 14 Common Stock Reference Transaction Current Balance Debit Credit Debit Credit 20,000,000 15 Paid in Capital Reference Transaction Current Balance Debit Credit Debit Credit 200,000,000 16 Retained Earnings Reference Transaction Current Balance Debit Credit Debit Credit 175,000,000 17 Treasury Stock Reference Transaction Current Balance Debit Credit Debit Credit 2,000,000 18 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 19 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 20 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 21 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 22 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 23 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 24 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 25 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 26 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 27 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 28 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 29 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 30 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 31 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 32 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 33 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 34 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 35 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 36 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 37 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 38 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 39 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 40 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 41 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 42 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 43 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 44 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 45 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 46 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 47 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 48 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 49 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 50 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 51 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 52 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 53 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 54 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 55 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 56 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 57 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 58 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 59 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 60 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 61 TRIAL BALANCE…page 1 Account Debit Credit 62 TRIAL BALANCE…page 2 Account Debit Credit 63 TRIAL BALANCE…page 3 Account Debit Credit Total 64...
View Full Document

This note was uploaded on 11/03/2010 for the course ACCT 325 taught by Professor Anderson,p during the Winter '09 term at Azusa Pacific.

Page1 / 140

exercise 23 - 1 ACCOUNTING Exercise 23 Microsoft 2 ECONOMIC...

This preview shows document pages 1 - 64. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online