In September 2025, Ivanhoe Corp. commits to selling 146 of its iPhone-compatible docking stations to Kingbird Co. for $15,330 ($105 per product). The stations are delivered to Kingbird over the next 6 months. After 89 stations are delivered, the contract is modified and Ivanhoe promises to deliver an additional 43 products for an additional $4,300 ($100 per station). All sales are cash on delivery. (a) Prepare the journal entry for Ivanhoe for the sale of the first 89 stations. The cost of each station is $51. (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. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold)

In September 2025, Ivanhoe Corp. commits to selling 146 of its iPhone-compatible docking stations to Kingbird Co. for $15,330 ($105 per product). The stations are delivered to Kingbird over the next 6 months. After 89 stations are delivered, the contract is modified and Ivanhoe promises to deliver an additional 43 products for an additional $4,300 ($100 per station). All sales are cash on delivery. (a) Prepare the journal entry for Ivanhoe for the sale of the first 89 stations. The cost of each station is $51. (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. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold)

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 3MC: During 2019, R Corp., a manufacturer of chocolate candies, contracted to purchase 100,000 pounds of...

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In September 2020, Gaertner Corp. commits to selling 150 of its iPhone-compatible docking stations to Better Buy Co. for $15,000 ($100 per product). The stations are delivered to Better Buy over the next 6 months. After 90 stations are delivered, the contract is modified and Gaertner promises to deliver an additional 45 products for an additional $4,275 ($95 per station). All sales are cash on delivery. Instructions a. Prepare the journal entry for Gaertner for the sale of the first 90 stations. The cost of each station is $54. b. Prepare the journal entry for the sale of 10 more stations after the contract modification, assuming that the price for the additional stations reflects the standalone selling price at the time of the contract modification. In addition, the additional stations are distinct from the original products as Gaertner regularly sells the products separately. c. Prepare the journal entry for the sale of 10 more stations (as in (b)), assuming that the pricing…
In September 2025, Cullumber Corp. commits to selling 155 of its iPhone-compatible docking stations to Ivanhoe Co. for $14,880 ($96 per product). The stations are delivered to Ivanhoe over the next 6 months. After 95 stations are delivered, the contract is modified and Cullumber promises to deliver an additional 40 products for an additional $3,640 ($91 per station). All sales are cash on delivery. (a) Prepare the journal entry for Cullumber for the sale of the first 95 stations. The cost of each station is $51. (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. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold)
In September 2025, Cullumber Corp.commits to selling 155 of its iPhone-compatible docking stations to Ivanhoe Co. for $14,880 ($96 per product). The stations are delivered to Ivanhoe over the next 6 months. After 95 stations are delivered, the contract is modified and Cullumber promises to deliver an additional 40 products for an additional $3,640 ($91 per station). All sales are cash on delivery. (a) Your answer is correct. Prepare the journal entry for Cullumber for the sale of the first 95 stations. The cost of each station is $51. (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. List all debit entries before credit entries.) Account Titles and Explanation Cash Debit 9120 Credit (b) Sales Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) eTextbook and Media List of Accounts 4845 9120 4845 Attempts:…
In September 2025, Cullumber Corp. commits to selling 155 of its iPhone-compatible docking stations to Ivanhoe Co. for $14,880 ($96 per product). The stations are delivered to Ivanhoe over the next 6 months. After 95 stations are delivered, the contract is modified and Cullumber promises to deliver an additional 40 products for an additional $3,640 ($91 per station). All sales are cash on delivery. (a) Your answer is correct. Prepare the journal entry for Cullumber for the sale of the first 95 stations. The cost of each station is $51. (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. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit (b) Cash Sales Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) eTextbook and Media List of Accounts Your answer is correct. 9120…
In September 2025, Ivanhoe Corp. commits to selling 146 of its iPhone-compatible docking stations to Kingbird Co. for $15,330 ($105 per product). The stations are delivered to Kingbird over the next 6 months. After 89 stations are delivered, the contract is modified and Ivanhoe promises to deliver an additional 43 products for an additional $4,300 ($100 per station). All sales are cash on delivery. (a) Your answer is correct. Prepare the journal entry for Ivanhoe for the sale of the first 89 stations. The cost of each station is $51. (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. List all debit entries before credit entries.) Account Titles and Explanation Cash Debit 9345 Credit (b) Sales Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) eTextbook and Media List of Accounts 4539 9345 4539 Attempts: 1 of…
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Circuit Fitness (CF) sells customized exercise equipment to fitness centers. On February 2nd, 2022, the sales manager for CF obtained a signed contract from Suburban Fitness Center (SFC) for all of the equipment for their new fitness center. The new fitness center is currently in the design stage and has a projected opening date of March 15, 2022. The contract requires CF to deliver the equipment on March 1, 2022. The contract specifies that the SFC will pay $300,000 for the equipment on March 31, 2023. The amount of interest on similar projects for this time period equates to $27,000. CF has significant experience in these types of transactions and a significant revenue reversal is not expected to occur. Will the interest be incorporated into the transaction price (yes/no) If the interest is incorporated into the price will the company recognize interest expense or interest income? c. What is the transaction price?
Infotech Bhd enters a contract on 1 January 2019 to produce software for a customer for RM7,000,000. Infotech Bhd receives RM2,000,000 from the customer upon contract signing and the balance at the completion of the contract. According to the contract, the customer controls the system during the creation of the program. Infotech Bhd estimates that it will take two years to complete the project and uses the number of labor hours to estimate the rate of completion. Infotech spends 40,000 hours in the first year of the contract and another 10,000 hours the second year Prepare the entries recorded by Infotech over the life of this contract. Assume that all payments are complete by the end of 2020
Circuit Fitness (CF) sells customized exercise equipment to fitness centers. On September 1st, 2021, the sales manager for CF obtained a signed contract from Suburban Fitness Center (SFC) for all of the equipment for their new fitness center. The new fitness center is currently in the design stage and has a projected opening date of November 1, 2022. CF will deliver the equipment on October 1, 2022. The contract specifies that the SFC will pay $1,400,000 within 7 days of the contract being signed by both parties. SFC made the payment on September 5, 2021. The amount of interest on similar projects for this time period equates to $120,000. CF has significant experience in these types of transactions and a significant revenue reversal is not expected to occur. Will the interest be incorporated into the transaction price (yes/no) If the interest is incorporated into the price will interest expense be recognized or interest income? What is the transaction price?
Help Save & Exi On July 15, 2024. Ortiz & Company signed a contract to provide EverFresh Bakery with an ingredient-weighing system for a price of $82,800. The system included finely tuned scales that fit into EverFresh's automated assembly line, Ortiz's proprietary software modified to allow the weighing system to function in EverFresh's automated system, and a one-year contract to calibrate the equipment and software on an as-needed basis. If Ortiz was to provide these goods or services separately, it would charge $54,000 for the scales, $10,000 for the software, and $36,000 for the calibration contract. Ortiz delivered and installed the equipment and software on August 1, 2024, and the calibration service commenced on that date. Assume that the scales, software and calibration service are all separate performance obligations. How much revenue will Ortiz recognize in 2024 for this contract? Note: Do not round intermediate calculations. Multiple Choice ww $82.800 $52.992