During 2022 Hernandez Company incurred $1900000 of research and development costs in its laboratory to develop a new product and $220000 in legal fees to patent the product.Use the following tabular analysis to record these costs assuming that the payments were made in cash
A)Increase Patents $220000 increase Expenses $1900000 decrease Cash $2120000.
B)Increase Patents and decrease Cash $2120000.
C)Decrease Cash and increase Expenses $2120000.
D)Increase Revenues and Cash $2120000.

Question

During 2022 Hernandez Company incurred $1900000 of research and development costs in its laboratory to develop a new product and $220000 in legal fees to patent the product.Use the following tabular analysis to record these costs assuming that the payments were made in cash 
A)Increase Patents $220000 increase Expenses $1900000 decrease Cash $2120000. 
B)Increase Patents and decrease Cash $2120000. 
C)Decrease Cash and increase Expenses $2120000. 
D)Increase Revenues and Cash $2120000.

Quizplus · Accepted Answer

The Answer of During 2022 Hernandez Company incurred $1900000 of research and development costs in its laboratory to develop a new product and $220000 in legal fees to patent the product.Use the following tabular analysis to record these costs assuming that the payments were made in cash 
A)Increase Patents $220000 increase Expenses $1900000 decrease Cash $2120000. 
B)Increase Patents and decrease Cash $2120000. 
C)Decrease Cash and increase Expenses $2120000. 
D)Increase Revenues and Cash $2120000.

During 2022 Hernandez Company Incurred $1900000 of Research and Development