On October 10, 2020, Flounder Co. entered into a contract with Belisle Inc. to transfer Flounder’s specialty products (sales value of $9,200, cost of $6,500) on December 15, 2020. Belisle agrees to make a payment of $5,400 upon delivery and signs a promissory note to pay the remaining balance on January 15, 2021. What entries does Flounder make in 2020 on this contract?

Q: During 2018, the entity billed the customer equivalent to 30% of the contract price. During 2019,…

A: Gross profit realized for 2019 is calculated in the following table: Contract price 1,000,000…

Q: On July 1, 2021, Concord Inc. entered into a contract to deliver one of its specialty machines to…

A: Contract Entered for Purchase of Machine: Equipment Purchase Agreement means an agreement between…

Q: unland Company sells goods that cost $300,000 to Marigold Company for $400,000 on January 2, 2020.…

A:

Q: Entity A is a manufacturer of consumer goods.  On 1 January 2020, Entity A entered into a one-year…

A: note: The answer has been prepared with the assumption that the amounts are not received and only…

Q: On May 1, 2020, Splish Company enters into a contract to transfer a product to Eric Company on…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On October 2, 2020, a company enters into a contract to transfer a product to the customer. It is…

A: COGS is starting inventory and purchases throughout the amount, minus your ending inventory. You may…

Q: A company sells equipment to customers for $491,000 on January 1st, 2021. The sales price includes…

A: Unearned Service Revenue is a liability account that is used to record advanced collections from…

Q: On January 1, 2018, an entity enters into a contract to transfer Products C and D to a customer in…

A: Contract liability: When the entity obtains a certain amount of  consideration for the goods or…

Q: BC Company requires refundable advance payments with special orders for machinery constructed to…

A: Liabilities exists in the form of loans, accounts payable, mortgages, deferred revenues etc. Current…

Q: TDC Company is preparing its financial statement for the year ended December 31, 2020. Accounts…

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

Q: On May 1, 2020, Indigo Inc. entered into a contract to deliver one of its specialty mowers to…

A: Journal entry record the financial transactions. In case money is received in advance, it is…

Q: On October 1, 2021, Richardson Inc. entered into a contract to deliver one of its specialty…

A: ASC 606 is a revenue recognition standard that affects all business that enter into contracts with…

Q: On April 30, 2019 the Triple Safety Agency received an advance payment of P540,000 for a one-year…

A: Service income should be recognized as revenue when it is earned. Any advance received against which…

Q: Delta Spirit, Inc. entered into a contract to sell equipment to Wilco, LLC on October 1, 2021. Along…

A: When the consideration received for the sale included not only the sale of goods but also includes…

Q: Recording Revenue Under a Contract Modification Traders Inc. enters into a three-year office…

A: These entries recognize the revenue earned by Traders Inc. for each year of the contract. The…

Q: On May 1, 2020, Nash Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo…

A: Date Particulars Debit Credit May 1, 2020 No entry     May 15, 2020 Cash $889      Unearned…

Q: On November 1, 2024, Wildhorse Farm entered into a contract to buy a $159000 harvester from John…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Oriole Inc. enters into an agreement on March 1, 2023, to sell aluminum ingots for $240,000 cash to…

A: The agreement includes sales of $240,000 which will be repurchased at an interest of 2%. The…

Q: report as accounts payable

A: 1. Advance to supplier has to be removed from Accounts Payable and should be shown separately. 2.…

Q: On October 5, 2020, a company enters into a contract to transfer a product to the customer. It is…

A: Revenue recognition principle says that revenues of an organisation should be recognised only when…

Q: to buy a $155000 harvester from John Deere. The contract required Sheridan Farm to pay $155000 in…

A: The Unearned revenue is the revenue received in cash but not earned yet i.e services are not…

Q: On March 01, 2021, WX entered into a franchise contract with YZ. The franchise agreement required…

A: The non-refundable fees are recognized at the time of receiving the non-refundable fees and the…

Q: Big Construction Company signs a contract on 1 July 2019, agreeing to build a warehouse for Buyer…

A: 1)

Q: Denim, Inc. entered into a contract to sell equipment to Levi LLC. on October 1, 2021. Along with…

A: The above question is based on accounting standard 115, i.e. Revenue from contracts with customer…