question early in 2013 the excalibur company began developing a newsoftware package 4285387

Question

Early in 2013, the Excalibur Company began developing a newsoftware package to be marketed. The project was completed inDecember 2013 at a cost of $15 million. Of this amount, $12 millionwas spent before technological feasibility was established.Excalibur expects a useful life of five years for the new productwith total revenues of $18 million. During 2014, revenue of $9million was recognized.

 

Required:

 

1.

Prepare a journal entry to record the 2013 development costs.(Enter your answers in whole dollars. If no entry isrequired for an event, select “No journal entry required” in thefirst account field.)

 

 

2.

Calculate the required amortization for 2014. (Enteryour answers in whole dollars.)

At what amount should the computer software costs be reported inthe December 31, 2014, balance sheet? (Enter your answersin whole dollars.)