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    pepper1a's Avatar
    pepper1a Posts: 3, Reputation: 1
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    #1

    Feb 2, 2014, 04:09 PM
    To obtain resources, Dr. Lee has contributed his patent in exchange for 125,000 share
    To obtain resources, Dr. Lee has contributed his patent in exchange for 125,000 shares of stock, invested $25,000 of his own funds, and convinced friends, colleagues, and relatives to invest an additional $325,000 at $1 per share. What are the resources and claims against resources?
    On May 1, a prototyping firm delivered a prototype proof of concept of the product. How should the cost of the prototype be handled in the accounting records?

    Think of the accounting equation as a way to frame your answer.
    pepper1a's Avatar
    pepper1a Posts: 3, Reputation: 1
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    #2

    Feb 2, 2014, 04:10 PM
    A prototyping firm delivered a prototype proof of concept of the product. How should
    A prototyping firm delivered a prototype proof of concept of the product. How should the cost of the prototype be handled in the accounting records?
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
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    #3

    Feb 2, 2014, 04:11 PM
    What do YOU think ?
    While we're happy to HELP we wont do all the work for you.
    Show us what you have done and where you are having problems..
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    pepper1a Posts: 3, Reputation: 1
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    #4

    Feb 2, 2014, 09:45 PM
    So far what I have is that for the $25,000 investment of his own funds and his friends investment of $325,000, which equal $350,000. I would recognize the $350,000 in cash as debit and credit $350,000 as common stock. For the prototype proof of concept I would show it as research and development expend and credit to cash.
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