Homework Help is Here – Start Your Trial Now!
Business
Accounting
Arrow Co. entered into a contract with a customer for $340,000. The contract is for the delivery of equipment and a 3-year service maintenance contract for the equipment. Arrow sells separately the equipment for a selling price of $312,000, and the maintenance contract for three years for $59,000. The equipment was delivered on 1 June 120X1. Arrow has a 30 November year-end. Required: Prepare the journal entries required to record the revenue related to this contract during the period 1 June 20X1 to 30 November 20X1 in accordance with IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round percentage answers to nearest whole percent. Round final answer to the nearest whole dollar.) View transaction list

Arrow Co. entered into a contract with a customer for $340,000. The contract is for the delivery of equipment and a 3-year service maintenance contract for the equipment. Arrow sells separately the equipment for a selling price of $312,000, and the maintenance contract for three years for $59,000. The equipment was delivered on 1 June 120X1. Arrow has a 30 November year-end. Required: Prepare the journal entries required to record the revenue related to this contract during the period 1 June 20X1 to 30 November 20X1 in accordance with IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round percentage answers to nearest whole percent. Round final answer to the nearest whole dollar.) View transaction list

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Aa.38.

 

Arrow Co. entered into a contract with a customer for $340,000. The contract is for the delivery of equipment and a 3-year service maintenance contract for the equipment. Arrow sells separately the equipment for a selling price of $312,000, and the maintenance contract for three years for $59,000. The equipment was delivered on 1 June 1 20X1. Arrow has a 30 November year-end. Required: Prepare the journal entries required to record the revenue related to this contract during the period 1 June 20X1 to 30 November 20X1 in accordance with IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round percentage answers to nearest whole percent. Round final answer to the nearest whole dollar.) View transaction list Journal entry worksheet < 1 Record the contract for delivery of equipment. 2 Note: Enter debits before credits. Date 1 June 20X1 Record entry Journal entry worksheet < 1 2 Date 30 November 20X1 Note: Enter debits before credits. General Journal Record the liability related to the contract. Clear entry Record entry General Journal Clear entry Debit Credit View general journal Debit Credit View general journal >
Transcribed Image Text:Arrow Co. entered into a contract with a customer for $340,000. The contract is for the delivery of equipment and a 3-year service maintenance contract for the equipment. Arrow sells separately the equipment for a selling price of $312,000, and the maintenance contract for three years for $59,000. The equipment was delivered on 1 June 1 20X1. Arrow has a 30 November year-end. Required: Prepare the journal entries required to record the revenue related to this contract during the period 1 June 20X1 to 30 November 20X1 in accordance with IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round percentage answers to nearest whole percent. Round final answer to the nearest whole dollar.) View transaction list Journal entry worksheet < 1 Record the contract for delivery of equipment. 2 Note: Enter debits before credits. Date 1 June 20X1 Record entry Journal entry worksheet < 1 2 Date 30 November 20X1 Note: Enter debits before credits. General Journal Record the liability related to the contract. Clear entry Record entry General Journal Clear entry Debit Credit View general journal Debit Credit View general journal >
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Revenue Recognition
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS