On September 30, 2018, Athens Software began developing a software program to shield personal computersfrom malware and spyware. Technological feasibility was established on February 28, 2019, and the program wasavailable for release on April 30, 2019. Development costs were incurred as follows:September 30 through December 31, 2018 $2,200,000January 1 through February 28, 2019 800,000March 1 through April 30, 2019 400,000Athens expects a useful life of four years for the software and total revenues of $5,000,000 during that time.During 2019, revenue of $1,000,000 was recognized.Required:1. Prepare the journal entries to record the development costs in 2018 and 2019.2. Calculate the required amortization for 2019.
On September 30, 2018, Athens Software began developing a software program to shield personal computers
from malware and spyware. Technological feasibility was established on February 28, 2019, and the program was
available for release on April 30, 2019. Development costs were incurred as follows:
September 30 through December 31, 2018 $2,200,000
January 1 through February 28, 2019 800,000
March 1 through April 30, 2019 400,000
Athens expects a useful life of four years for the software and total revenues of $5,000,000 during that time.
During 2019, revenue of $1,000,000 was recognized.
Required:
1. Prepare the
2. Calculate the required amortization for 2019.
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