On May 10, 2020, Cullumber Co. enters intoa contract to deliver a product to Greig Inc.on June 15, 2020. Greig agrees to pay thefull contract price of $1,980 on July 15,2020. The cost of the goods is $1,280.Cullumber delivers the product to Greig onJune 15, 2020, and receives payment onJuly 15, 2020. Prepare the journal entries forCullumber related to this contract. Eitherparty may terminate the contract withoutcompensation until one of the partiesperforms.

Date Accounts and Explanation Debit Credit May 10, 2020 No entry (To record entry of…

Answered: July 15, 2020. Prepare the journal…

July 15, 2020. Prepare the journal entries fo Cullumber related to this contract. Either party may terminate the contract without compensation until one of the parties performs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 | 2 22 23 24 25 25 27 28 25 30332 38 34 35 35 21 18 19 Date 20 26 29 31 33 36 37 38 (The $18,000 option to purchase does not count as a bargain purchase, the expected residual value at the end of the lease term is also $18,000.) 39 40 (a) Computation of annual payments: 1/1/20 12/31/20 12/31/21 12/31/21 Skysong Leasing Company (Lessor) Lease Amortization Schedule Interest on Lease Receivable Annual Lease Payment Account Titles Recovery of Lease Receivable Debit 1 2 Credit 3 5 6 7 8 9 Lease 10 Receivable 11 189,000 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 |33 34 35 36 37 38 39 40
Prepare all of the journal entries for the lessor for 2020 and 2021 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December 31, and it does not use reversing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Date 1/1/20 /1/20 2/31/20 /1/21 2/31/21 Lease Receivable Cost of Goods Sold Sales Revenue (To record the lease) Cash Lease Receivable (To record the receipt of lease payment) Lease Receivable Interest Revenue Cash Lease Receivable Lease Receivable Interest Revenue Debit 451,000.00 I Credit 451,000.00
When products sold with a guarantee of free service or replacement during an extended warranty period, the costs of rendering such services should be recognized as ________________ in the year the product is sold, rather than in a later year in which the replacement is made or the repair service is performed.
December 31 The final pay period of the year will not be paid to employees until January 4, 2023. The company will accrue the wages for the final pay period only. Because the pay period is complete, there will not be a reversing entry for the accrual. As a result, paychecks will not be issued for this pay period since they will be paid in the following year and reflected on the Employee Earning Record forms for each employee when paid. The remainder of the employer liability will be paid with the final filing for the year. The company pays holiday pay for December 26, 2022. Reminder, holidays and vacations are not included as hours worked for calculation of overtime. • Complete the Employee Gross Pay tab. Complete the Payroll Register for December 31. • Complete the General Journal entries for the December 31 payroll. Update the General Ledger with the ending ledger balances from the December 15 pay period ledger accounts first, and then post the journal entries from the current period…
Katz offered to purchase land from Joiner, and, after negotiating the terms, Joiner accepted. On October 13, over the telephone, both parties agreed to extend the time period for completing and mailing the written contract until October 20. Although the original paperwork deadline in the offer was October 14, Katz stated he had inserted that provision “for my purpose only.” All other provisions of the contract remained unchanged. Accordingly, Joiner completed the contract and mailed it on October 20. Immediately after, however, Joiner sent Katz an overnight letter stating that “I have signed and returned contract, but have changed my mind. Do not wish to sell property.” Joiner now claims an oral modification of a contract within the statute of frauds is unenforceable. Katz counters that the modification is not material and therefore does not affect the underlying contract. Explain who is correct.
On December 1, 2021, Carlos entered into a lease on a building for use in his business for $1,500 per month. Under the lease terms, Carlos pays 12 months' rent ($18,000) in advance on December 1. How much can Carlos deduct for rent in 2021? a.$13,000 b.$18,000 c.$1,000 d.$12,000
990.
I need help on the arrows where I am pointing at.
Which of the following taxpayers are not required to make estimated payments? a. An employee who works at a local department store with appropriate withholding and no other income. Ob. A wealthy individual whose earnings are from corporate dividends. Oc. c. A car mechanic who is self-employed and earns $50,000 a year. Od. All of these choices must make estimated payments.
On May 14, a prospect completes an applicalion for insurance. The producer collects the initial premium and issues a conditional receipt. The insurance company determines that the prospedt is insurable and issues a standard policy on May 26. If the producer delivers the policy to the insured on June 1, the effective date of coverage is A. May 14 B. May 24 C. May 26 D. June 1