The Ombrelle studio is developing a 3D rendering engine internally. On 1 May 20X1, it demonstrates all the development-phase criteria for the first time. The salaries owed to the developers assigned to the project amount to 70,000 for the period before that date and 110,000 for the period after it. After 1 May 20X1, Ombrelle also buys for cash 25,000 of components and services consumed by the project. Record the summary entry for 20X1.
- Salaries owed before 1 May 20X1
- 70,000
- Salaries owed from 1 May 20X1
- 110,000
- Components and services paid in cash after 1 May 20X1
- 25,000