Consider the following events for Cullumber's Innovations Co. that occurred during 2024. For each event, indicate the amount of expense that should be recognized in the 2024 income statement. (Hint: Use professional judgement to estimate expense where appropriate.) (Do not leave any answer field blank. Enter O for amounts.) 1. 2. 3. 4. Leased factory space from Whole Properties Company for a one-year period starting November 1, 2024. Six months of rent at $2,730 per month was paid in advance. Incurred $32,200 of research costs for new products. No new products were developed but management believes the research will lead to new products. Used power and water during December for manufacturing. Cullumber's will receive the bill in January 2025 and pay it in February 2025. Power and water costs totalling $50,600 have been recorded for the period from January 1 to November 30, 2024. New packaging equipment costing $43,680 was installed during November 2024. The equipment was tested in December and will be used for packaging starting in January 2025. The equipment has an estimated useful life of 4 years and an estimated residual value of $3,640. The company uses straight-line depreciation. $ $ $ $ [0

Consider the following events for Cullumber's Innovations Co. that occurred during 2024. For each event, indicate the amount of expense that should be recognized in the 2024 income statement. (Hint: Use professional judgement to estimate expense where appropriate.) (Do not leave any answer field blank. Enter O for amounts.) 1. 2. 3. 4. Leased factory space from Whole Properties Company for a one-year period starting November 1, 2024. Six months of rent at $2,730 per month was paid in advance. Incurred $32,200 of research costs for new products. No new products were developed but management believes the research will lead to new products. Used power and water during December for manufacturing. Cullumber's will receive the bill in January 2025 and pay it in February 2025. Power and water costs totalling $50,600 have been recorded for the period from January 1 to November 30, 2024. New packaging equipment costing $43,680 was installed during November 2024. The equipment was tested in December and will be used for packaging starting in January 2025. The equipment has an estimated useful life of 4 years and an estimated residual value of $3,640. The company uses straight-line depreciation. $ $ $ $ [0

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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