Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2021, deposits collected on containers shipped were $914,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2021, represented deposits of $564,000. In 2021, $829,000 was refunded and deposits forfeited were $35,500. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021. 2. Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet. Balance on December 31 < Required 1 Required 2 >

Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2021, deposits collected on containers shipped were $914,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2021, represented deposits of $564,000. In 2021, $829,000 was refunded and deposits forfeited were $35,500. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021. 2. Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet. Balance on December 31 < Required 1 Required 2 >

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12C: Researching GAAP Situation Hamilton Company operates in an industry with numerous competitors. It is...

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Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container’s cost. They receive a refund when the container is returned. During 2024, deposits collected on containers shipped were $850,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2024, represented deposits of $530,000. In 2024, $790,000 was refunded and deposits forfeited were $35,000. Required: Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024. Determine the liability for refundable deposits to be reported on the December 31, 2024, balance sheet.
Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2024, deposits collected on containers shipped were $889,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2024, represented deposits of $533,000. In 2024, $824,000 was refunded and deposits forfeited were $55,500. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024. 2. Determine the liability for refundable deposits to be reported on the December 31, 2024, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024.…
Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container’s cost. They receive a refund when the container is returned. During 2021, deposits collected on containers shipped were $916,000.Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2021, represented deposits of $546,000. In 2021, $804,000 was refunded and deposits forfeited were $43,750.Required:1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021.2. Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet.
Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container’s cost. They receive a refund when the container is returned. During 2021, deposits collected on containers shipped were $850,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2021, represented deposits of $530,000. In 2021, $790,000 was refunded and deposits forfeited were $35,000.Required:1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021.2. Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet.
Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2024, deposits collected on containers shipped were $896,000. Deposits are forfelted if containers are not returned within 18 months. Containers held by customers at January 1, 2024, represented deposits of $625,000. In 2024, $834,000 was refunded and deposits forfeited were $40,750. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfelted during 2024. 2. Determine the liability for refundable deposits to be reported on the December 31, 2024, balance sheet. 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024.…
(a) Concord Corp. follows IFRS and sells its products in expensive, reusable containers that can be tracked. The customer is charged a deposit for each container that is delivered and receives a refund for each container that is returned within two years after the year of delivery. When a container is not returned within the time limit, Concord accounts for the container as being sold at the deposit amount and credits the account Container Sales Revenue. Information for 2023 is as follows: Containers held by customers at December 31, 2022, from deliveries in: 2021 2022 Containers delivered in 2023 Containers returned in 2023 from deliveries in: Account Titles and Explanation (To record deposit from customers) (To record refund of deposit) (To record revenue) Prepare all journal entries required for Concord for the returnable deposits during 2023. Use the account Deposits. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all…
E6.14 (LO 5) (Gift Card Sales and Redemptions) During December 2023, Soft Skin Ltd. sells $20,000 of gift cards to customers. From reliable past experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In January 2024, $2,000 of these cards is redeemed for merchandise with a cost of $1,500. In February 2024, a further $10,000 of these cards is redeemed for merchandise with a cost of $8,000. The company uses a perpetual inventory system and has a February 28 year end Instructions Prepare the journal entry needed for December 2023. Prepare the journal entry needed for the January 2024 redemptions. Round to the nearest dollar. Prepare the journal entry needed for the February 2024 redemptions. Round to the nearest dollar. What amount, if any, will appear on the SFP concerning gift cards at February 28, 2024? Note:- Do not provide handwritten…
Choke Company sells products with reusable and expensive containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Containers unreturned at the beginning of 2020 P50,000 Containers delivered in 2020 500,000 Containers returned in 2020 240,000 Expired containers 30,000 How much is the deposit liability?
Question: On April 1, 2024, Oakland Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Oakland's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Oakland agrees to lend $540,000 to its supplier using a 12-month, 11% note. Required: Record the following transactions for Oakland Corporation: 1. The loan of $540,000 and acceptance of the note receivable on April 1, 2024. 2. The adjusting entry for accrued interest on December 31, 2024. 3. Cash collection of the note and interest on April 1, 2025.
Pacers Company sells its products in expensive reusable containers. The customer is charged a deposit for each container delivered and received a refund for each container returned within two years after the year of delivery. Pacers Company accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2023 is as follows: Containers held by customers at December 31, 2023 from deliveries in: 2021 – P310, 000; 2022 – P500, 000; 2023 – P850,000 Deposits distributed for containers returned from deliveries in 2021 – P280,000; 2022 – P390, 000; 2023 - P590, 000 How much is the ending balance of deposits on December 31, 2023? 2. Pistons company sells portable DVD players for P28,000 each and offers to each customer a 3-year service contract for an additional P3,000. During 2023, the company sold 800 DVD players and 500 service contracts for cash. Expenses related to the service contracts for 2023 amounted to…
Exercise 7 - 8 (Algo) Sales returns [LO7 - 4] Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $390,000. During 2024, Halifax sold merchandise on account for $ 13,300,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $386,000 in sales for credit, with $213,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its…
Problem 6-5 (AICPA Adapted) On January 1, 2021, Enigma Company sold an equipment costing P500,000 which had a carrying amount of P350,000, receiving a P125,000 down payment and, as additional consideration, a P400,000 noninterest bearing note due on January 1, 2024. There was no established exchange price for the equipment, and the note had no ready market. The prevailing rate of interest for a note of this type at January 1, 2021 was 12%. The present value of 1 at 12% for three periods is 0.7118. Required: Prepare journal entries for 2021, 2022, 2023 and 2024.