On October 2, 2020, a company enters into a contract to transfer a product to the customer. It is agreed that the customer will pay the full price of $105,000 in advance on October 9, 2020. The customer pays on October 9, 2020, and company delivers the product on October 19, 2020. The company should make the journal entry to record cost of goods sold on which date of October: _______ (enter the date only).
Q: The amount remitted by the retailer to the consignor is: the net income earned by the consignor on…
A: The calculation of amount remitted by the retailer to the Consignor and the net income earned by the…
Q: On November 1, 2021, Crane Farm entered into a contract to buy a $138000 harvester from John Deere.…
A: Journal entries are the the primary reporting of the transactions in the books of accounts.
Q: unland Company sells goods that cost $300,000 to Marigold Company for $400,000 on January 2, 2020.…
A:
Q: On May 1, 2017, Pharoah Company enters into a contract to transfer a product to Eric Company on…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: amount of revenue to be recognized by the seller
A: Under accrual basis of accounting, revenue should be recognized upon earning. The revenue is said to…
Q: Cass Company enters into a contract with Dearborn Inc. to sell it $50,000 of goods with delivery on…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Machinery Corp transfers the machine, and collects the total contract price on February 1, 2020 The…
A: The analysis of five step model of revenue recognition with respect to the given case is presented…
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 May 1, 2017, Mount Company enters into a contract to transfer a product to Eric Company on…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: ober 1, 2020, Win Company consigned 240 posters to JAA Inc. with original cost of P1,000 each. Win…
A: Solution: 1) Amount of Loss Amount of Loss = Freight + (Number of Units lost) x Cost per unit…
Q: On May 10, 2017, Cosmo Co. enters into a contract to deliver a product to Greig Inc. on June 15,…
A: Revenue recognition: Revenue recognition is a process to record revenue. It is one of the accounting…
Q: (a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account…
A: Journal entries refers to the official book of a company which is used to record the day to day…
Q: On May 1, 2017, Mount Company enters into a contract to transfer a product to Eric Company on…
A: Unearned sales Revenue: Unearned sales Revenue means money received from the customer in advance for…
Q: Oriole Company sells goods that cost $320,000 to Sheffield Company for $435,000 on January 2, 2020.…
A: Introduction: Sales revenue: Revenue generated on selling of goods called as Sales revenue.
Q: On 1 July 2019, Entity A entered into the Contract X with a customer, Entity B, to sell Product A…
A: Date Particulars Amount Amount 1 July No Entry 30 September Payable A/c To Revenue…
Q: On May 1, 2020, Mount Company enters into a contract to transfer a product to Eric Company on…
A: Date Account Titles and Explanation Debit Credit June 15, 2020 Cash $25,000…
Q: On November 1, 2021, Sunland Farm entered into a contract to buy a $144000 harvester from John…
A: Unearned revenue is recognized as a liability, It is the amount of cash for which goods or services…
Q: Cass Company enters into a contract with Dearborn Inc. to sell it $50,000 of goods with delivery on…
A: 1) Meaning of Transaction Price Transaction Price is the Amount of consideration that company…
Q: On July 1, 2021, Blossom Inc. entered into a contract to deliver one of its specialty machines to…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: A company receives an advance payment for special－order goods to be manufactured and delivered with…
A: Advance payment seems to be a type of payment made ahead of its usual timetable, such as prepayment…
Q: Company Zumba delivers goods to Customer Yuppie on 1 January 2018. The agreement between the two…
A:
Q: On 1 January 2020, Entity A sold 100 units of Product X to Entity B for $220 per unit payable on 31…
A: The core principle of IFRS 15 is that an entity recognizes revenue:(a) to depict the transfer of…
Q: Culver Corp., a public company using IFRS, signed a long-term non-cancellable purchase commitment…
A: Journal: Recording of a business transactions in a chronological order.
Q: Ivanhoe Company sells on credits goods that cost $304,500 to Ricard Company for $418,500 on January…
A: Journal entry is a process of recording the business transactions in the books of accounts for the…
Q: On May 12. 2020, a customer bought a business package from the seller of gadgets. The price of the…
A: Given: Package = P 1,000,000 Stand Alone Prices Merchandise 900,000Invoice Printer 55,000Shop Neon…
Q: On May 1, 2017, Buffalo Inc. entered into a contract to deliver one of its specialty mowers to…
A: Revenue recognition: The revenue recognition requires every business organization to recognize the…
Q: Brainy Company started the construction of a building for a customer at a fixed contract price of…
A: Hi, as you have posted multiple sub parts but as per the Bartleby policy we are able to solve the…
Q: On October 1, 2017, Whispering Company enters into a contract to transfer a product to Choco Company…
A: Note: No entry is required for the contract made on October 1, 2017, as there was no transaction…
Q: A company receives an advance payment for special-order goods to be manufactured and delivered…
A: Whenever business receives amount for the services or goods that are to be provided or delivered in…
Q: Lowery Co. sells major household appliance service contracts for cash. The service contracts are for…
A: Unearned revenue refers to the revenue received from the customers for which the services or the…
Q: Omicron plc prepares financial statements to 31 December each year. On 1 January 2021, Omicron plc…
A: Here discuss about the details of the contract which are made by the company to sell the product…
Q: Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020. The…
A: a. Date Account Titles and Explanation Debit Credit January 2, 2020 Accounts…
Q: On May 1, 2020, Richardson Inc. entered into a contract to deliver one of its specialty mowers to…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Klope sells major household appliance service contracts for cash. The service contracts are for…
A: The question is based on the concept of Financial Accounting.
Q: Receipts from contracts are credited to unearned service contract revenue.
A: Fajardo Company First Year Contract : 200,000 ( 500,000*40% ) Second Year…
Q: On May 1, 2020, Teal Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On June 1, 2019, Madison Inc. entered into a contract to deliver one of its specialty machinery to…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: November 15, 2021 Fields Sales Company entered into a contract to sell footballs for $20,000 to…
A: Under accrual basis accounting, the revenue and expenses are recognised and recorded as and 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: A On January 1. 2020. Machinery Corp. enters into a contract with a customer for the sale of a…
A: Revenue refers to the amount which is earned by the seller or provider sells goods or provides the…
Q: On May 10, 2020, Sunland Co. enters into a contract to deliver a product to Splish Brothers Inc. on…
A: Solution:- Preparation of Journal entries for Sunland company as follows:-
Q: A company enters into a contract to build a factory for a customer. The agreed price is P2M and the…
A: Answer - Expected Value of the Transaction Price of the Contract - The Expected Value of…
Q: On January 31, O’Malley Company contracted to have two products built by Taylor Manufacturing for a…
A: Given, Total manufacturing cost = P185,000 Standalone price for product 1 =…
Q: Statement: At December 31, 2021, goods costing P125,000 are in transit from a supplier. Terms of…
A: Lets first understand the meaning of term FOB Origin. FOB Origin is also known as FOB shipping point…
Q: On May 10, 2020, Sweet Co. enters into a contract to deliver a product to Greig Inc. on June 15,…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: As of December 31, 2020, Andrei Corporation has P 5,000,000 contract in progress on which the…
A: Percentage completion method uses the percentage of work that has completed. So, the income is…
Q: On May 1. 2020, Indigo Inc entered into a contract to deliver one of its specialty mowers to…
A: Recording journal entry is one of an important and needful process of accounting cycle, through the…
Q: On October 1, 2020, Win Company consigned 240 posters to JAA Inc. with original cost of P1,000 each.…
A: Win company is cosignor and JAA company is cosignee 240 posters with P1000 is sent. Cost of goods…
Q: Coronado Industries sells major household appliance service contracts for cash. The service…
A: Unearned service revenue: Small businesses receive unearned revenue when a client pays for goods or…
On October 2, 2020, a company enters into a contract to transfer a product to the customer. It is agreed that the customer will pay the full price of $105,000 in advance on October 9, 2020. The customer pays on October 9, 2020, and company delivers the product on October 19, 2020. The company should make the
Step by step
Solved in 2 steps
- The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000On October 5, 2020, a company enters into a contract to transfer a product to the customer. It is agreed that the customer will pay the full price of $50,000 in advance on October 10, 2020. The customer pays on October 10, 2020, and company delivers the product on October 26, 2020. When will the (seller) company make its first journal entry related to the above? Choose from 5, 10, and 26, and enter the date only.On May 10, 2020, Cullumber Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $1,980 on July 15, 2020. The cost of the goods is $1,280. Cullumber delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Cullumber related to this contract. Either party may terminate the contract without compensation until one of the parties performs.
- On April 1, 2021, the seller enters into a contract to deliver products to thecustomer on May 31, 2021. The customer agrees to pay the full contract price of P10,000 on June 15, 2021. The cost of the goods is P7,000. The seller delivers the products to the customer on May 31, 2021 and receives payment on June 15, 2021. Determine the amount of revenue to be recognized by the seller on June 15, 2021.On May 10, 2025, Cullumber Co. enters into a contract to deliver a product to Oriole Inc. on June 15, 2025. Oriole agrees to pay the full contract price of $1,980 on July 15, 2025. The cost of the goods is $1,280. Cullumber delivers the product to Oriole on June 15, 2025, and receives payment on July 15, 2025. Prepare the journal entries for Cullumber related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit SIOn May 1, 2020, Splish Company enters into a contract to transfer a product to Eric Company on September 30, 2020. It is agreed that Eric will pay the full price of $ 23,680 in advance on June 15, 2020. Eric pays on June 15, 2020, and Splish delivers the product on September 30, 2020. Prepare the journal entries required for Splish in 2020.
- On May 10, 2020, Splish Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,080 on July 15, 2020. The cost of the goods is $1,330. Splish delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Splish related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title to record contract entered into enter a debit amount enter a credit amount enter an account title to record contract entered into enter a debit amount…On May 10, 2020, Cosmo Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,000 on July 15, 2020. The cost of the goods is $1,300. Cosmo delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Cosmo related to this contract. Either party may terminate the contract without compensation until one of the parties performs.On May 12. 2020, a customer bought a business package from the seller of gadgets. The price of the contract was P 1,000,000. It was specified that the total amount will be paid on an installment basis. the following items and services will be provided to the customer:• Merchandise • Invoice Printer• Shop neon Logo• Staff TrainingAll of these will be provided and exclusively supplied by the seller company. The contract listed the following price breakdown:• Merchandise 900,000• Invoice Printer 55,000• Shop Neon Logo signboard 15,000• Staff Training 30,000The first installment payment was made 5 months before the opening of the store. All the required training of the staff was completed before the start of the operation. The store started its operation on December 12, 2020, but the shop sign was not yet installed as of this date.Required: Compute the revenue from the contract as of December 31, 2020
- On May 10, 2020, Marigold Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $1,890 on July 15, 2020. The cost of the goods is $1,170. Marigold delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Marigold related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date May 10, 2020Jun. 15, 2020Jul. 15, 2020 enter an account title to record contract entered into enter a debit amount enter a credit amount enter an account title to record…On May 12. 2020, a customer bought a business package from the seller of gadgets. The price of the contract was P 1,000,000. It was specified that the total amount will be paid on an installment basis. the following items and services will be provided to the customer:• Merchandise • Invoice Printer• Shop neon Logo• Staff Training All of these will be provided and exclusively supplied by the seller company. The contract listed the following price breakdown:• Merchandise 900,000• Invoice Printer 55,000• Shop Neon Logo signboard 15,000• Staff Training 30,000The first installment payment was made 5 months before the opening of the store. All the required training of the staff was completed before the start of the operation. The store started its operation on December 12, 2020, but the shop sign was not yet installed as of this date. Compute the revenue from the contract as of December 31, 2020On May 1, 2020, Mount Company enters into a contract to transfer a product to Eric Company on September 30, 2020. It is agreed that Eric will pay the full price of $25,000 in advance on June 15, 2020. Eric pays on June 15, 2020, and Mount delivers the product on September 30, 2020. Prepare the journal entries required for Mount in 2020.