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…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?Start with the partial model in the file attached. Marvel Pence, CEO of Marvel’s Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts of 2020 and 2021: Sales Labor and Raw Materials May, 2020 $75,000 $80,000 June, 2020 $115,000 $75,000 July, 2020 $145,000 $105,000 August, 2020 $125,000 $85,000 September, 2020 $120,000 $65,000 October, 2020 $95,000 $70,000 November, 2020 $75,000 $30,000 December, 2020 $55,000 $35,000 January, 2021 $45,000 N/A Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 20%; collections during the month following the sale, 60%; collections the second month following the sale, 25%. Payments for labor and raw materials are typically made during the month following the…
- Start with the partial model in the file attached. Marvel Pence, CEO of Marvel’s Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts of 2020 and 2021: Sales Labor and Raw Materials May, 2020 $75,000 $80,000 June, 2020 $115,000 $75,000 July, 2020 $145,000 $105,000 August, 2020 $125,000 $85,000 September, 2020 $120,000 $65,000 October, 2020 $95,000 $70,000 November, 2020 $75,000 $30,000 December, 2020 $55,000 $35,000 January, 2021 $45,000 N/A Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 20%; collections during the month following the sale, 60%; collections the second month following the sale, 25%. Payments for labor and raw materials are typically made during the month following the…Start with the partial model in the file attached. Marvel Pence, CEO of Marvel’s Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts of 2020 and 2021: Sales Labor and Raw Materials May, 2020 $75,000 $80,000 June, 2020 $115,000 $75,000 July, 2020 $145,000 $105,000 August, 2020 $125,000 $85,000 September, 2020 $120,000 $65,000 October, 2020 $95,000 $70,000 November, 2020 $75,000 $30,000 December, 2020 $55,000 $35,000 January, 2021 $45,000 N/A Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 20%; collections during the month following the sale, 60%; collections the second month following the sale, 25%. Payments for labor and raw materials are typically made during the month following the…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.SORU-2. An automobile manufacturer company plans to manufacture a production line for use in product manufacturing. The production of the line will start on 01.07.2019 and will be completed in 1.5 years. At the end of the first 6th month, 1,000,000 TL will be spent, 1,500,000 TL at the end of the second 6th month and 2,000,000 TL at the end of the third 6th month. The production line can be used for 5 years from 01.01.2020. With the use of the line, 4,000,000 TL at the end of the first year and 40% increasing revenue will be obtained in the following years, 1,000,000 TL at the end of the first year and 35% increased operating costs in the following years. After the line is started to be used, a revision cost of 500.000 TL will be made every two years at the end of the year. At the end of the fifth year, the line will be sold for TL 1.109.000. If the annual interest rate is considered as 12%, how many TL will the company have left at the end of five years?
- Hawks Storage Inc. rents storage space to students in the Waterloo area. The rentals are for a four or eight month period to correspond with students needs for storage during terms that they are home or on work terms. Hawks Storage Inc. has chosen a October 31 fiscal year end and began operations in 2020. During the year ended October 31, 2020 Hawks storage Inc. received customer rental payments as follows: Rentals for the period May 2020-August 2020 $6080 Rentals for the period May 2020-December 2020 $ 10960 Rentals for the period September 2020-April 2021 $16800 Rentals for the period September 2020-December 2020 $ 9760 Hawks Storage Inc. provided the rental space as scheduled. Calculate the amount of rental revenue for the first fiscal year ended October 31, 2020. Round your answer to the nearest dollar. Your Answer: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.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: