Brief Exercise 12-10 Treasure Land Corporation incurred the following costs in 2

Question

Brief Exercise 12-10

Treasure Land Corporation incurred the following costs in 2014.

$119,050

146,550

223,690

$489,290

Prepare the necessary 2014 journal entry or entries for Treasure Land. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Cost of laboratory research aimed at discovery of new knowledge

$119,050

Cost of testing in search for product alternatives

146,550

Cost of engineering activity required to advance the design of a    product to the manufacturing stage

223,690

$489,290

Explanation / Answer

Account Titles and Explanation    Debit Credit

1. Research & Development Expenses 119050 119050

(Explanation- Being expenses incurred towards

laboratory research for development of new knowledge.)

2. Testing Charges 146550 146550

(Explanation- Being expenses incurred towards testung

charges in research for product alternatives.)

3. Designing Charges 223690 223690

(Explabnation- Being expenses incurred towards

Manaufacturing of product in advance designing.)

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