What is adjusting entry?

Accounting- research and development adjusting entry?

  • An adjusting entry question: Company A did some research and development for new products. They correctly expensed the research but have capitalized $154,000 of development expenses as an intangible asset. The account balances are: 1. Research and Development Expense $125,000 DR 2. Intangible Assets- $154,000 DR What is the adjusting entry?

  • Answer:

    debit research & dev exp $154,000 credit int asset $154,000

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debit research & dev exp $154,000 credit int asset $154,000

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