6. On May 1, 2025, Cullumber Company enters into a contract to transfer a product to Gary Company on September 30, 2025. It is agreed that Gary will pay the full price of $24,040 in advance on June 15, 2025. Gary pays on June 15, 2025, and Cullumber delivers the product on September 30, 2025. Prepare the journal entries required for Cullumber in 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Dd.33.

 

6.
On May 1, 2025, Cullumber Company enters into a contract to transfer a product to Gary Company on September 30, 2025. It is
agreed that Gary will pay the full price of $24,040 in advance on June 15, 2025. Gary pays on June 15, 2025, and Cullumber delivers
the product on September 30, 2025. Prepare the journal entries required for Cullumber in 2025. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the
amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)
7.
Date
10
Account Titles and Explanation
Amounts Reported in Income
Blossom Company sold 11,000 Super-Spreaders on December 31, 2025, at a total price of $1,188.000, with a warranty guarantee that
the product was free of any defects. The cost of the spreaders sold is $627,000. The assurance warranties extend for a 2-year period
and are estimated to cost $37,300. Blossom also sold extended warranties (service-type warranties) related to 2.200 spreaders for 2
years beyond the 2-year period for $13.200. Given this information, determine the amounts to report for the following at December
31, 2025: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash.
Amounts Reported on the Balance Sheet
Debit
$
Credit
Transcribed Image Text:6. On May 1, 2025, Cullumber Company enters into a contract to transfer a product to Gary Company on September 30, 2025. It is agreed that Gary will pay the full price of $24,040 in advance on June 15, 2025. Gary pays on June 15, 2025, and Cullumber delivers the product on September 30, 2025. Prepare the journal entries required for Cullumber in 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) 7. Date 10 Account Titles and Explanation Amounts Reported in Income Blossom Company sold 11,000 Super-Spreaders on December 31, 2025, at a total price of $1,188.000, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $627,000. The assurance warranties extend for a 2-year period and are estimated to cost $37,300. Blossom also sold extended warranties (service-type warranties) related to 2.200 spreaders for 2 years beyond the 2-year period for $13.200. Given this information, determine the amounts to report for the following at December 31, 2025: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash. Amounts Reported on the Balance Sheet Debit $ Credit
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