Hospital Equipment Company (HEC) acquired several fMRI machines HEC usually sells these machines to hospitals at a price of $7,120. HE repair services for fMRI machines for $1,780. HEC is paid $7,120 cash
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- gohil sanjayAnemic Inc. manufactures and sells specialized equipment normally at P1,000,000 for the medical industry. Anemic also provides installation and maintenance service with the purchased equipment. The entity also offers this service at P300,000 separately to other clients for two years. Anemic enters into a contract on June 1, 2021, with HealthyLiving, a relatively new local hospital. The hospital purchases the specialized equipment with installation and maintenance services for P1,200,000. The terms of payment are: a 20% downpayment and the remaining is payable with a non-interest bearing note for 5 equal annual installments. Also included in the terms of the contract is training services for six months as the hospital needs technical knowledge for the relatively new equipment. The hospital estimated that the training will cost them P160,000. Anemic delivered the equipment on June 30, 2021, while the services offered commenced on the same date. The entity’s borrowing cost is…The NYU hospital has an arrangement with Queens College to provide hospital care to the QC’s members at a specific rate per member, per month. In April the QC paid the hospital $500,000 per agreement for patients treated in March. Based on pre-established billing rates, the hospital would have billed the QC $600,000. How much revenue should NYU recognized? $0 $500,000 $600, which is correct
- As a medical administrator at the local hospital, you made a total purchase of $4447.85. Currently, your cardiovascular department purchased 40 saline solution bags; 25 catheters; and 150 syringe speciality packages. The cost for the saline solution, catheter, syringe package is $4.99/solution, $19.99/catheter, and unknown amount per package, respectively. No taxes are added. Round to the cent. What is the of each syringe package? Include unit symbol. 200 DPopcorn Company manufactures and sells commercial ovens. It is currently running a promotion in which it pays a $750 rebate to any customer that purchases an oven from one of its participating dealers. The rebate must be returned within 60 days of purchase. Given its historical experience and the ease of obtaining a rebate, Popcorn expects all qualifying customers will receive the rebate. Required: Prepare the journal entry to record the sale of an oven to a participating dealer for $8,000.Elegance Esthetics Wholesalers Corporation sells various esthetics treatment tools, esthetic and spa supplies. In 2020, Elegance Esthetics signed a two-year contract with Saskatoon College to supply it with 100 esthetic tool and product kits for students in the college's esthetics program for each academic semester. The value of the contract is $231,600 based on four academic semesters over the two-year period. The kits are sold for $579 each. The cost of the kits is $472 each. The college can return any unsold kits to the company and Elegance estimates a return rate of 3%. Because the kits involve esthetic supplies and could potentially be contaminated, returned kits need to be scrapped and cannot be resold. Elegance shipped 100 kits for the September 2020 semester, 100 kits in January 2021 semester and another 100 kits in September 2021 semester. The kits are invoiced as soon as they are shipped (at the beginning of each semester) and payment is required within 30 days. The college…
- ABC Company, a grocery retailer, operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on groceries. Program members can redeem the points for further groceries. The points have no expiry date. During 2019, the sales amounted to P7,000,000 and the entity have granted 10,000 points. Management expects that only 80% of the points will be redeemed. The cost of each loyalty point is P100. As of December 31, 2019, 4,800 points have already been redeemed. In 2020, the management revised its expectations to 90% of the points will be redeemed. As of December 31, 2020, the entity redeemed 2,400 points. What amount should be reported as revenue earned from loyalty points in 2020?Tree top Products, Ltd. sells stuffed animals to local convenience stores and small pharmacy chains. All of Tree top sales are on consignment. The consignee receives a 15% commission for each product sold. Treetop completed the following consignment-related transactions. Date Transaction Amount February 2, 2024 Ships merchandise on consignment to Next Door Pharmacy. Cost = $600,000 Retail Value = $2,000,000 May 15, 2024 Next Door Pharmacy sells 80% of the consigned inventory for cash. $1,600,000 June 1, 2024 Next Door notifies Treetop about the sale and remits the cash collected to Treetop, net of the 15% commission. $1,600,000 January 3, 2025 Next Door sells the remainder of the consigned merchandise for cash. $400,000 January 5, 2025 Next Door notifies Treetop and remits the cash collected net of the 15% commission. $400,000 Let's begin our journal entries with the consignor (Treetop) entries.…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.
- ABC operates a consignment shop where she sells clothes for women and children. The average number of consignments sold per month is 1,000. The average material cost and the selling price of each consignment are $8 and $20, respectively. The monthly fixed costs to run this business are given below: Rental cost: $750Utilities: $150Advertising: $35Insurance: $100Labor cost: $4,000 Using Excel spreadsheet / worksheet, determine Anna's profit. Attach excel solution.Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $115,370. The seller agreed to allow a 6.25 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,080. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,150. The loader operator is paid an annual salary of $11,910. The cost of the company's theft insurance policy increased by $2,090 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $9,900. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader. Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costsCover Rugs is holding a 2-week carpet sale at Josh’s Club, a local warehouse store. Cover Rugs plans to sell carpets for $950 each. The company will purchase the carpets from a local distributor for $760 each, with the privilege of returning any unsold units for a full refund. Josh’s Club has offered Cover Rugs two payment alternatives for the use of space. ■ Option 1: A fixed payment of $7,410 for the sale period ■ Option 2: 10% of total revenues earned during the sale period Assume Cover Rugs will incur no other costs. Q1. Calculate the breakeven point in units for (a) Option 1 and (b) Option 2. Q2. At what level of revenues will Cover Rugs earn the same operating income under either option? a. For what range of unit sales will Cover Rugs prefer Option 1? b. For what range of unit sales will Cover Rugs prefer Option 2? Q3. Calculate the degree of operating leverage at sales of 65 units for the two rental options. 4. Briefly explain and interpret your answer to requirement 3.