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8 In 2024, Starsearch Corporation began work on three research...

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Accounting

8
In 2024, 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 2024 expenditures were included in the R&D expense account:
A total of $260,000 of equipment was purchased solely for use in one of the projects. After the project is completed, the equipment
will be abandoned. The remaining $460,000 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.
Required:
Prepare journal entries, reclassifying amounts in R&D expense, to reflect the appropriate treatment of the expenditures.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Journal entry worksheet
Record entry to capitalize the cost of equipment to be used on future projects
incorrectly charged to R&D expense.
Note: Enter debits before credits.
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