(SOLVED)- WEBDESIGN Ltd decided that it needed to update its computer


Question Description:

$19

WEBDESIGN Ltd. decided that it needed to update its computer programs for its supplier relationships. It purchased an off-the-shelf program and modified it internally to link it to ‘WEBDESIGN’s other programs. The following costs may be relevant to the accounting for the new software:
Net carrying amount of old software …………… $1,100
Purchase price of new software …………….. 5,900
Training costs …………………… 4,550
General and administrative costs ……………. 3,750
Direct cost of in-house programmer’s time spent on conversion … 1,720
Prepare journal entries to record the software replacement.

Answer

$19