Fill in the blanks in the following separate income statements a through e. Sales Cost of goods sold Merchandise inventory, beginning Total cost of merchandise purchases Merchandise inventory, ending Cost of goods sold $ 65,000 $ 8,600 31,000 33.140 b 44,000 $ 16,490 2,600 20.000 51,000 5,000 8,800 d 7,600 45,000 7,500 $ 24,400 4,520 5,200 7.400

McElroy Inc., a marketing consulting firm, entered into the following three revenue contracts in March, 2021.   1.  The contract with Customer A requries that McElroy Inc. provides 10 hours of consulting services at $300 per hour.   2.  The contract with Customer B requires that McElroy, Inc. develops an electronic promotion of the customer's new product line.  Payment for the services are equal to $6,000 plus 2% of the customer's sales over the one month promotion period.  McElroy, Inc. estimates that there is a 30% chance of sales totaling $100,000, a 50% chance of sales totaling $150,000, and a 20% chance of sales totaling $200,000.   3.  The contract with Customer C requires McElroy, Inc. to create a promotional mailing for its product for $8,000.  McElroy Inc. will receive a bonus of $500 if the project is completed within 5 business days and a $250 bonus if the project is completed within 6 business days.  Based on McElroy's estimate of the time to complete the project and status…

A company separately sells home security equipment and 12 months of system monitoring service for $120 and $240, respectively. The company sells an equipment/monitoring bundle on January 1 for a total price of $270. The monitoring service begins immediately after the equipment is delivered and installed on January 1.   Required: Determine the dollars of revenue that should be allocated to the equipment for each bundled sale. Determine the dollars of revenue that should be allocated to the service for each bundled sale. Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the income statement for the period January 1–31.

On July 8, Azure Corporation enters into an agreement with one of its customers, Madsen, Inc. to provide them with 4,500 units at a cost of $500 per unit. Madsen sends a cash deposit of $225,000 on the same day. Azure sends the first 2,700 units on August 31, with an invoice for $675,000 due September 15. The remaining 1,800 units are delivered on October 15, along with an invoice for the remaining amount of the total $2,250,000 purchase price, due October 31. Madsen made all payments on the invoice due dates. Assume that Azure Corporation had no uncertainties about its own ability to meet the terms of the contract or about Madsen, Inc.'s ability and willingness to pay. Prepare the journal entries to record the events (leaving out the accounting for Azure's costs). Date July 8 August 31 September 15 October 15 October 31 Account To record the deposit. To record initial delivery of units. To collect cash on account. To record delivery of remaining units. To collect cash on account. <<…

On July 15, Zink Jewels agrees to a contract to sell 4,000 promise rings for $100,000 to Costless Stores, Inc. On October 1, after 2,000 rings pair of have been delivered, Zink and Costless modify the agreement to reduce the price of the remaining 1,000 rings to $12 each. During October, Zink Jewels delivers 600 rings. How much revenue will Zink recognize for the month of October?$7,200 $2,175 $3,300 $13,050

Clayco Company completes the following transactions during the year. July 14 Writes off a $750 account receivable arising from a sale to Briggs Company that dates to 10 months ago. (Clayco Company uses the allowance method.) 30 Clayco Company receives a $1,000, 90-day, 10% note in exchange for merchandise sold to Sumrell Company (the merchandise cost $600). Aug. 15 Receives $2,000 cash plus a $10,000 note from JT Co. in exchange for merchandise that sells for $12,000 (its cost is $8,000). The note is dated August 15, bears 12% interest, and matures in 120 days. Nov. 1 Completes a $200 credit card sale with a 4% fee (the cost of sales is $150). The cash is transferred immediately from the credit card company. 3 Sumrell Company refuses to pay the note that was due to Clayco Company on October 28. Prepare the journal entry to charge the dishonored note plus accrued interest to Sumrell Company’s accounts receivable. 5 Completes a $500 credit card sale with a 5% fee (the cost of sales is…

Florida Keys Construction installs swimming pools. It calculates that warranty obligations are 3% of sales. For the year just ending, Florida Keys' sales were $1,450,000. Previous quarterly entries debiting Product Warranty Expense totaled $28,700. Determine the estimated warranty expense for the year?       Journal entry necessary to bring the account to the needed balance at December 31. If an amount box does not require an entry, leave it blank. Dec. 31   fill in the blank  fill in the blank      fill in the blank  fill in the blank

Lyon County Bank agrees to lend the Grimwood Brick Company $100,000 on January 1. Grimwood Brick Company signs a $100,000, 8%, 9 month 33. The entry made by Grimwood Brick Company on January 1 to record the rmation below for questions 33 and 34 flower shop follows GAAP and applies the revenue recognition principle. When is b. when the performance obligation is satisfied. A flower shop makes a large sale for $1,000 on November 30. The customer is the $1.000 considered to be recognized? d. in the period that income taxes are paid sent a statement on December 5 and a check is received on December 10. The note. on proceeds and issuance of the note is a. Interest Expense. Cash 6,000 94,000 Notes Payable b. Cash 100,000 100,000 Notes Payable c. Cash Interest Expense Notes Payable d. Cash. Interest Expense Notes Payable Interest Payable 34. What is the adjusting entry required if Grimwood Brick Company prepares financial statements on June 30? a. Interest Expense. Interest Payable b. Interest…

Hitzu Company sold a copler (that costs $7.500) for $15,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2 the copler requires on-site repairs that are completed the same day. The repairs cost $111 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copler.

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