(ACC 422 Week 4) Leontyne Price Company from time to time embarks on a research program when a special project seems to offer possibilities

E12-16 (Accounting for R&D Costs) Leontyne Price Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2006 the company expends $325,000 on a research project, but by the end of 2006 it is impossible to determine whether any benefit will be derived from it.

Instructions
(a) What account should be charged for the $325,000, and how should it be shown in the financial statements?
(b) The project is completed in 2007, and a successful patent is obtained. The R&D costs to complete the project are $110,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2007 total $16,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2007.
(c) In 2008, the company successfully defends the patent in extended litigation at a cost of $47,200, thereby extending the patent life to December 31, 2015. What is the proper way to account for this cost? Also, record patent amortization (full year) in 2008.
(d) Additional engineering and consulting costs incurred in 2008 required to advance the design of a product to the manufacturing stage total $60,000. These costs enhance the design of the product considerably. Discuss the proper accounting treatment for this cost.

Click here for the solution: (ACC 422 Week 4) Leontyne Price Company from time to time embarks on a research program when a special project seems to offer possibilities

Draw the activity-on-node (AON) project network associated with the following activities for Dave Carhart’s consulting company project

Problem 3.3 Draw the activity-on-node (AON) project network associated with the following activities for Dave Carhart’s consulting company project. How long should it take Dave and his team to complete this project? What are the critical path activities?

Activity Immediate Predecessor Days
A - 3
B A 4
C A 6
D B 6
E B 4
F C 4
G D 6
H E,F 8


Click here for the solution: Draw the activity-on-node (AON) project network associated with the following activities for Dave Carhart’s consulting company project

Task time estimates for a production line setup project at Robert Klassen’s Ontario factory are as follows

Problem 3.7 Task time estimates for a production line setup project at Robert Klassen’s Ontario factory are as follows:

Activity Time In HRS Immediate Predecessor
A 6 -
B 7.2 -
C 5 A
D 6 B,C
E 4.5 B,C
F 7.7 D
G 4 E,F

a) Develop an AON network for this problem.
b) What is the critical path?
c) What is the total project completion time?


Click here for the solution: Task time estimates for a production line setup project at Robert Klassen’s Ontario factory are as follows

The following is a table of activities associated with a project at Bill Figg Enterprises, their durations and what activities each must precede

Problem 3.15 The following is a table of activities associated with a project at Bill Figg Enterprises, their durations and what activities each must precede:

ACTIVITY DURATION (WEEKS) PRECEDES
A (START) 1 B,C
B 1 E
C 4 F
E 2 F
F(END) 2 -

a) Draw an AON diagram of the project, including activity durations.
c) What is the project duration (in weeks)?
d) What is the slack (in weeks) associated with any and all noncritical paths through the project?


Click here for the solution: The following is a table of activities associated with a project at Bill Figg Enterprises, their durations and what activities each must precede

Accounting Comprehensive Project: Alli Co. is a merchandising business

Foundations of Accounting I
Accounting Project

Alli Co. is a merchandising business. The account balances for Alli Co. as of November 30, 2012 (unless otherwise indicated), are as follows:

110 Cash $ 73,920
112 Accounts Receivable 37,875

AND SO ON

Check Figures for Accounting Project:
Cash Receipts Journal; Cash Column: 90,411
Unadjusted Trial Balance Total: 1,075,455
Net Income: 254,829
Post Closing Trial Balance: 355,756


Click here for the solution: Alli Co. is a merchandising business

ACC 225 Week 9 Final Project: Comprehensive Problem-Perpetual: Denney Enterprises

ACC 225 Week 9
Use the spreadsheet in Course Materials named Final Project to complete the problems. Use the tabs labeled P07D and Given P07D.

Inv. No. Check
Date Description Name or Date No. Terms Amount
Dec. 16 Merchandise sold (cost $4,600) Hanna Seppa 916 2/10, n/30 $7,700
17 Received credit memo on returned merch. Funk Company Dec. 15 1,040
17 Purchased office supplies KK's Supply Company Dec. 16 n/10 EOM 615
18 Received credit memo on returned merch. KK's Supply Company Dec. 17 40
20 Issued credit memo on returned merch. Bo Brown Dec. 15 500
21 Purchased store equipment KK's Supply Company Dec. 21 n/10 EOM 6,700
22 Received payment less discount Hanna Seppa Dec. 12
23 Paid invoice less discount Crossland Company Dec. 15 623
24 Sold merchandise on credit (cost $600) Shilo Jones 917 1,200
24 Paid inv. less discount and return Funk Company Dec. 15 624
25 Received payment less discount and return Bo Brown Dec. 15
26 Purchased merchandise and invoice Crossland Company Dec. 25 2/10, n/60 8,100
29 Sold office supplies for cash at cost 50
30 Issued check to owner for personal use Cadence Denney 625 2,500
31 Check issued for sales salaries Jamie Inman 626 2,020
31 Issued check for electric bill Access Electric Company 627 710
31 Cash sales for last half of month (cost $11,200) 29,600

Check figure: Trial balance totals $219,408


Click here for the solution: ACC 225 Week 9 Final Project: Comprehensive Problem-Perpetual: Denney Enterprises

Canvas Reproduction, Inc., has spent $4,500 dollars researching a new project

Canvas Reproduction, Inc., has spent $4,500 dollars researching a new project. The project requires $20,000 worth of new machinery, which would cost $3,000 to install. The company would realize $4,500 in after-tax proceeds from the sale of old machinery. If Canvas’s working capital is unaffected by this project, what is the initial investment amount for this project?

Click here for the solution: Canvas Reproduction, Inc., has spent $4,500 dollars researching a new project