Problem 1-22 (AICPA Adapted)Black Company required nonrefundable advance paymentswith special orders for machinery constructed to customerspecifications.The entity provided the following information for the currentyear:Customer advances - beginning of yearAdvances received with ordersAdvances applied to orders shippedAdvances applicable to orders canceledWhat amount should be reported as current liability foradvances from customers at year-end?a. 1,480,000b.C.d.1,380,000880,0000Problem 1-23 (AICPA Adapted)Lovie Company offered three payment plans on twelve-monthcontracts.#1#2#3The entity provided the following information on the threeplans and the number of children enrolled in each plan fromSeptember 1, 2023 through August 31, 2024 contract year:Initial paymentper child50,00020,000Monthly feeper childa. 330,000b. 438,000c. 660,000d. 990,0001,180,0001,840,0001,640,000500,0003,0005,000Number ofchildren15129The entity received P990,000 of initial payments onSeptember 1, 2023, and P324,000 of monthly fees during theperiod September 1 through December 31, 2023.26On December 31, 2023, what amount should be reported asdeferred revenue?

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Answered: Problem 1-22 (AICPA Adapted) Black…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information Exercise 9-4A (Algo) Recognizing sales tax payable LO 9-2 [The following information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 8 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $81,500 plus sales tax of 8 percent. Exercise 9-4A (Algo) Part e e. On which financial statement will the sales tax liability appear? The liability is shown on the
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Required information Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Problem 6-10 (Algo) Part 1 Westgate recognizes revenue over time according to percentage of completion. Revenue Gross profit (loss) 2021 $2,044,000 5,256,000 2,170,000 1,885,000 X Answer is complete but not entirely correct. 2022 3,600,000 $ $ $ 2021 2,800,000 $ 756,000 $ 972,000 2022 $2,628,000 2,628,000 2,502,000 2,600,000 Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations.…
(AICPA) 6. On January 1, 20x8, Harrow Co. as lessee signed a five-year noncancellable equipment lease with annual payments of P100,000 beginning December 31, 20x8. The implicit interest rate is 10%. How much is the interest expense for the year ended December 31, 20x8? a. 37,900 (AICPA) b. 27,900 с. 24,200 d. 0
11. Ferol Company acquired rights to a patent from Rachal Company requiring an advance royalty payment when agreement was signed. Ferol Company remits royalties earned and due under the agreement on October 31 each year. Additionally, on the same date, Ferol Company pays in advance estimated royalties for the next year. Ferol Company adjusts prepaid royalties at year-end. Information for the year ended December 31, 2021 is as follows: 01/01/2021 Prepaid royalties 75,000 10/31/2021 Royalty payment (charged to royalty expense) 1,350,000 12/31/2021 Year-end credit adjustment to royalty expense 165,000 Under the accrual basis, Ferol Company royalty expense for 2021 is Group of answer choices 1,255,000 1,260,000 1,350,000 1,185,000
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Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) 2021 2022 $2,044,000 $2,628,000 5,256,000 2,628,000 2,170,000 2,502,000 1,885,000 2,600,000 Problem 6-10 (Algo) Part 5 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate…
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Required information Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Problem 6-10 (Algo) Part 1 Westgate recognizes revenue over time according to percentage of completion. Revenue Gross profit (loss) 2021 $2,044,000 5,256,000 2,170,000 2,502,000 1,885,000 2,600,000 2021 2022 2023 2022 $2,628,000 $2,890,800 2,628,000 Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.) 2023 0 5,328,000 5,515,000
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