Ivanhoe Company sells on credits goods that cost $304,500 to Ricard Company for $418,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $36,000. The standalone selling price of the goods is $382,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 2, 2020 enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount (To record sales on account) Jan. 2, 2020 enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount (To record cost of goods aold) (b) Ivanhoe prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Ivanhoe recognize related to its sale to Ricard? First Quarter Sales Revenue $enter a dollar amount Cost of Goods Sold enter a dollar amount Gross Profit $enter a total amount for this statement
Ivanhoe Company sells on credits goods that cost $304,500 to Ricard Company for $418,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $36,000. The standalone selling price of the goods is $382,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 2, 2020 enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount (To record sales on account) Jan. 2, 2020 enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount (To record cost of goods aold) (b) Ivanhoe prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Ivanhoe recognize related to its sale to Ricard? First Quarter Sales Revenue $enter a dollar amount Cost of Goods Sold enter a dollar amount Gross Profit $enter a total amount for this statement
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Ivanhoe Company sells on credits goods that cost $304,500 to Ricard Company for $418,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $36,000. The standalone selling price of the goods is $382,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete.
(a) Prepare thejournal entries (if any) to record the sale on January 2, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
(b) Ivanhoe prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Ivanhoe recognize related to its sale to Ricard?
(a) Prepare the
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
|
Jan. 2, 2020
|
enter an account title to record the transaction on January 2, 2017
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record the transaction on January 2, 2017
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to record the transaction on January 2, 2017
|
enter a debit amount
|
enter a credit amount
|
|
| (To record sales on account) | |||
|
Jan. 2, 2020
|
enter an account title to record the transaction on January 2, 2017
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record the transaction on January 2, 2017
|
enter a debit amount
|
enter a credit amount
|
|
| (To record cost of goods aold) |
(b) Ivanhoe prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Ivanhoe recognize related to its sale to Ricard?
| First Quarter | |||
|---|---|---|---|
|
Sales Revenue
|
$enter a dollar amount
|
||
|
Cost of Goods Sold
|
enter a dollar amount
|
||
|
Gross Profit
|
$enter a total amount for this statement
|
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