Prepare journal entry for delivery of equipment. A leading vegetable organic farm named Fresh organics wants to purchase a harvest machine from Murray where the contract stipulated to pay P150,000 as advance payment on Dec 1 2020. Harvester cost of P110,000 delivered on Dec 30, 2020.
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- Wiam water supply services orders a water pump and expects the delivery in 30 days. The order was placed in 1st January, 2019 with an estimated cost of RO 8000. The water pump was delivered on time by the supplier on 30th January, 2019 with a voucher of RO 8,100. The voucher was approved on 6th February 2019 and the payment was settled on 7th February, 2019. Based on the above case, answer the following six questions (Questions 45-50) Question 45 Question text In the above case the disbursement is recorded on: a. 1st July, 2019 b. 30th January, 2019 c. 7th February, 2019 d. 6th February, 2019 Question 46 Question text Suppose the order made on 1st January is cancelled later on 10th January, which among the following will be the correct accounting treatment? a. A fresh encumbrance is made again on 10th January b. There will be no effect on the encumbrance control account c. The encumbrance made earlier is reversed. d. The available fund balance…During 2019, Boge Corporation signed a noncancelable contract to purchase 10,000 bushels of soybeans at $5 per bushel with delivery to be made in 2020. On December 31, 2019, the price of soybeans had fallen to $4.50 per bushel. On May 1, 2020, Boge takes delivery of the soybeans when the price is $4.75 per bushel.Prepare the journal entries required on December 31, 2019, and May 1, 2020.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?
- Elegance Esthetics Wholesalers Corporation sells various esthetics treatment tools, esthetic and spa supplies. In 2020, Elegance Esthetics signed a two-year contract with Saskatoon College to supply it with 100 esthetic tool and product kits for students in the college's esthetics program for each academic semester. The value of the contract is $231,600 based on four academic semesters over the two-year period. The kits are sold for $579 each. The cost of the kits is $472 each. The college can return any unsold kits to the company and Elegance estimates a return rate of 3%. Because the kits involve esthetic supplies and could potentially be contaminated, returned kits need to be scrapped and cannot be resold. Elegance shipped 100 kits for the September 2020 semester, 100 kits in January 2021 semester and another 100 kits in September 2021 semester. The kits are invoiced as soon as they are shipped (at the beginning of each semester) and payment is required within 30 days. The college…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?On May 1, 2020, Richardson Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $900 in advance on May 15, 2020. Kickapoo pays Richardson on May 15, 2020, and Richardson delivers the mower (with cost of $575) on May 31, 2020. Instructions a. Prepare the journal entry on May 1, 2020, for Richardson. b. Prepare the journal entry on May 15, 2020, for Richardson. c. Prepare the journal entry on May 31, 2020, for Richardson.
- NY Company offers a set of building blocks to customers who send in 3 UPC codes from NY cereal along with P50. The block set costs NY P110 each to purchase and P60 each to deliver to customers. During 2019, NY sold 12,000,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2019, 1,200,000 UPC codes were redeemed. Prepare NY’s December 31, 2019 adjusting entry.Mt. Horeb Alpaca Co. has a herd of 150 alpaca. The alpaca are sheared once a quarter to harvest very valuable alpaca wool that is used in designer sweaters. Mt. Horeb has the following information related to the alpaca herd at July 1, 2019, and during the first quarter of the fiscal year.AlpacaCarrying value (equal to net realizable value), July 1, 2019.....................$120,000Change in fair value due to growth and price changes................................7,700Decrease in fair value due to harvest.....................................................(975)Alpaca wool harvested during the first quarter (at net realizable value)...........13,000Instructionsa. Prepare the journal entries for Mt. Horeb's biological asset (Alpaca herd) for the first quarter.b. Prepare the journal entries for the Alpaca wool harvested in the first quarter.c. Prepare the journal entry when the Alpaca wool is sold for $14,500.d. Briefly discuss the impact on income of the following events related to the…During 2019, R Corp., a manufacturer of chocolate candies, contracted to purchase 100,000 pounds of cocoa beans at 1.00 per pound, delivery to be made in the spring of 2020. Because a record harvest is predicted for 2020, the price per pound for cocoa beans had fallen to 0.80 by December 31, 2019. Of the following journal entries, the one that would properly reflect in 2019 the effect of the commitment of R Corp. to purchase the 100,000 pounds of cocoa is:
- On December 31, 2019, Naysayer Company has outstanding purchase commitments for 10,000 gallons at P200 per gallon of raw materials to be used in the manufacturing process. Required : Prepare journal entry under each of the following assumptions : a. The market price on December 31, 2019 is P210. b. It is expected that the market price will decline to P170 in early January 2020. c. The market price on December 31 2019 is P170. d. The market price on December 31, 2019 is P170. On January 31, 2020 when the 10,000 gallon shipment is received, the market price is P150. e. The market price on December 31, 2019 is P170. On January 31, 2020 when the 10,000 gallon shipment is received, the market price is P210.On May 1, 2020, Culver Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $942 in advance on May 15, 2020. Kickapoo pays Culver on May 15, 2020, and Culver delivers the mower (with cost of $585) on May 31, 2020.(a) Prepare the journal entry on May 1, 2020, for Culver. (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 May 1, 2020 enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount (b) Prepare the journal entry on May 15, 2020, for Culver. (Credit account titles are automatically indented when the…On May 1, 2020, Tamarisk Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $893 in advance on May 15, 2020. Kickapoo pays Tamarisk on May 15, 2020, and Tamarisk delivers the mower (with cost of $566) on May 31, 2020.(a) Prepare the journal entry on May 1, 2020, for Tamarisk. (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 May 1, 2020 enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount (b) Prepare the journal entry on May 15, 2020, for Tamarisk. (Credit account titles are automatically…