On August 1, 2022, The STUVWXYZ Corporation paid P4,200,000 to Atras-Zhinigang Manufacturing Co. for the development of a vaccine in a period of two years. The amount paid was debited to R & Dexpense (expense method). On December 31, 2022, the company accountant prepared the covering adjusting entry. Prepare the correcting entry (if any) if the adjusting entry made by the accountant on December 31, 2022 is as follow: a. R&D expense 875,000 Prepaid R & D 875,000 b. Prepaid R & D 2,100,000 R&D expense Income from R & D adjustment 2,000,000 c. Prepaid R & D 3,325,000 Accrued R & D Expense 3,325,000 d. Prepaid R & D 875,000 R&D expense 875,000 No entry made

On August 1, 2022, The STUVWXYZ Corporation paid P4,200,000 to Atras-Zhinigang Manufacturing Co. for the development of a vaccine in a period of two years. The amount paid was debited to R & Dexpense (expense method). On December 31, 2022, the company accountant prepared the covering adjusting entry. Prepare the correcting entry (if any) if the adjusting entry made by the accountant on December 31, 2022 is as follow: a. R&D expense 875,000 Prepaid R & D 875,000 b. Prepaid R & D 2,100,000 R&D expense Income from R & D adjustment 2,000,000 c. Prepaid R & D 3,325,000 Accrued R & D Expense 3,325,000 d. Prepaid R & D 875,000 R&D expense 875,000 No entry made

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 14E

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