Beta Ltd manufactures laptops. Cellar Ltd routinely buys laptops from Beta Ltd. On 1 June 2021, Beta Ltd enters into a contract with Cellar Ltd to manufacture 100 laptops at $1 500 each. The laptops are shipped on 1 July 2021. To honour Cellar Ltd as a loyal customer, Beta Ltd allows Cellar Ltd to make the payment in 2 years' time without charging any interests. Implicit interest rate is 5%. What journal entries that Beta needs to make on 1 July 2021 to account for the revenue received from Cellar? O DR Cash $150,000; CR Revenue $136,054; CR Deferred interest $13,946 O DR Accounts receivable $150,000; CR Revenue $136,054: CR Deferred interest $13,946 DR Accounts receivable $150,000; CR Revenue $150,000 DR Cash $150,000; CR Revenue $150,000

Beta Ltd manufactures laptops. Cellar Ltd routinely buys laptops from Beta Ltd. On 1 June 2021, Beta Ltd enters into a contract with Cellar Ltd to manufacture 100 laptops at $1 500 each. The laptops are shipped on 1 July 2021. To honour Cellar Ltd as a loyal customer, Beta Ltd allows Cellar Ltd to make the payment in 2 years' time without charging any interests. Implicit interest rate is 5%. What journal entries that Beta needs to make on 1 July 2021 to account for the revenue received from Cellar? O DR Cash $150,000; CR Revenue $136,054; CR Deferred interest $13,946 O DR Accounts receivable $150,000; CR Revenue $136,054: CR Deferred interest $13,946 DR Accounts receivable $150,000; CR Revenue $150,000 DR Cash $150,000; CR Revenue $150,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sage Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $649,600 (cost of $550,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,600. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Sage for the full sales price. (a) Prepare the journal entry(ies) to record the sale and related cost of goods sold for Sage Company on January 2, 2020, and the payment on January 28, 2020. Assume that Sage Company records the January 2, 2020, transaction using the net method. (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.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold)
Best Appliance Store offers a two-year warranty on all appliances sold. The company estimates that 5% of all appliances sold need to be serviced at an average cost of $50 each. At December 31, 2020, the Warranty Liability account had a balance of $19,000. During 2021, the store spends $10,000 repairing 200 appliances. An additional 3,500 appliances are sold in 2021. On the 2021 income statement, warranty expense will be: a. $8,750 Cb. $10,000 C. $8,500 d. $9,000
AAA Company sells gift certificates that expire one year after their issuance. Information on gift certificates is shown below: Unearned revenue – gift certificates, January 1, 2020 - 600,000Gift certificates sold during 2019 - 1,000,000Prior year gift certificates redeemed in 2020 - 400,000Gift certificates sold and redeemed in 2020 - 700,000 How much is the unearned revenue from gift certificates as of December 31, 2020?
jaydip
Moon Ltd. sells custom made furniture on 24 months' interest free terms to qualifying customers. On 30 June 2023, Moon Ltd. sells $71,600 of furniture to Jessie Ltd., which cost $40,300, payable by 30 June 2025. By 30 June 2024, only 40% of the ordered furniture was delivered. The appropriate interest rate for this transaction is determined to be 11.20% per annum. Moon Ltd. uses perpetual system. By 30 June 2025, all payment was made, and the remaining furniture was delivered. Required: Question 4 Calculate the present value of the $71,600 to be received on 30 June 2025.
On 1 October 2020, ABC Limited sold three machines to a customer for a total amount of R 1 900 000. The three machines were delivered to the premises of the customer on the same day. Included in the sales contract are 1-year warranties for all three of the machines. A warranty for each of these machines may cost R 20 000 to obtain. The customer received a trade discount of 10 % for both tractors. ABC Limited awards a settlement discount of 6% to any customer who settles their account in full within 30 days of making a purchase. This particular customer often buys machinery from ABC Limited and based on past dealings with the customer ABC Limited expects that the customer will settle their account within 30 days. The customer settled their account in full on 3 November 2020. How many performance obligations are contained in the contract? 01 2 3 06
Latvia Limited made a loan to Lithuania Incorporated in exchange for a $250,000 note on July 1, 2021.This note is for a period of seven years, with interest at 4% quarterly. Assume the market rate forcomparable loans is 8%. Prepare the journal entry in good form for Latvia Limited’s books
On January 1, 2020, Apple, gave a loan to Samsung Nokia Inc. amounting to P1,000,000 and received a two-year 12%, 1, 000 note. The note calls for annual interest to be paid each January 2. Apple collected the interest payment in 2021 as scheduled. The company incurred origination cost amounting to P57,851, 40% of which had been charged to Samsung Nokia Inc. The yield rate on the loan is arranged at 10%. On December 31, 2021, however, based on the changing market conditions and Samsung Nokia Inc.'s financial struggles, only P900,000 is expected to be collected by Apple. The P900,000 principal amount is expected to be collected on December 31, 2020, 2021, and 2022. By December 2021, Apple assessed that the market's time value for money is computed at 8%. How much loss should be recognized in relation to the loan on December 31, 2021? Use 9 decimal places for the present value factors. Kindly show your solution.
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.7 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end. 2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and (b) Midwest Bank. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) Journal entry worksheet Record the adjusting entry for interest for Precision Castparts. Record the adjusting entry for interest for Midwest Bank. Note: Enter debits before credits. Date General…
On 1st July 2020 Bashir purchase a machine for RO 15,000. The terms of purchase was 20% cash and the balance to be paid in monthly instalments of RO 500. What amount of the loan will be disclosed under Long term liabilities in the balance sheet on 31 Dec 2020? a. RO 3,000 b. RO 5,000 c. RO 7,000 d. RO 6,000
Please help me
On 1st July 2020 Bashir purchase a machine for RO 15,000. The terms of purchase was 20% cash and the balance to be paid in monthly instalments of RO 500. What amount of the loan will be disclosed under current liabilities in the balance sheet on 31 Dec 2020? a. RO 3,000 b. RO 6,000 c. RO 7,000 d. RO 5,000