Consider each of the transactions below independently. All of the expenditures were made in cash.
1. During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $150,000, of which 40% occurred after the technological feasibility of the product had been established.
2. Xon Corporation paid $20,000 in 2020 for unusual and infrequent repairs due to damage from flood; repairs did not increase the use, value, or the economic life of the asset.
3. The Johnson Company disposed of an old machine with an original cost of $9,400 and a book value of $5,000 and received $6,000. Required: Prepare all necessary journal entries to record each of the above transactions.
Note: You may create a table as follows to organize your journal entries.
