Problem 1-22 (AICPA Adapted) Black Company required nonrefundable advance payments with special orders for machinery constructed to customer specifications. The entity provided the following information for the current year: Customer advances - beginning of year Advances received with orders Advances applied to orders shipped Advances applicable to orders canceled What amount should be reported as current liability for advances from customers at year-end? a. 1,480,000 b. C. d. 1,180,000 1,840,000 1,640,000 500,000 1,380,000 880,000 0

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem 1-22 (AICPA Adapted)
Black Company required nonrefundable advance payments
with special orders for machinery constructed to customer
specifications.
The entity provided the following information for the current
year:
Customer advances - beginning of year
Advances received with orders
Advances applied to orders shipped
Advances applicable to orders canceled
What amount should be reported as current liability for
advances from customers at year-end?
a. 1,480,000
b.
C.
d.
1,380,000
880,000
0
Problem 1-23 (AICPA Adapted)
Lovie Company offered three payment plans on twelve-month
contracts.
#1
#2
#3
The entity provided the following information on the three
plans and the number of children enrolled in each plan from
September 1, 2023 through August 31, 2024 contract year:
Initial payment
per child
50,000
20,000
Monthly fee
per child
a. 330,000
b. 438,000
c. 660,000
d. 990,000
1,180,000
1,840,000
1,640,000
500,000
3,000
5,000
Number of
children
15
12
9
The entity received P990,000 of initial payments on
September 1, 2023, and P324,000 of monthly fees during the
period September 1 through December 31, 2023.
26
On December 31, 2023, what amount should be reported as
deferred revenue?
Transcribed Image Text:Problem 1-22 (AICPA Adapted) Black Company required nonrefundable advance payments with special orders for machinery constructed to customer specifications. The entity provided the following information for the current year: Customer advances - beginning of year Advances received with orders Advances applied to orders shipped Advances applicable to orders canceled What amount should be reported as current liability for advances from customers at year-end? a. 1,480,000 b. C. d. 1,380,000 880,000 0 Problem 1-23 (AICPA Adapted) Lovie Company offered three payment plans on twelve-month contracts. #1 #2 #3 The entity provided the following information on the three plans and the number of children enrolled in each plan from September 1, 2023 through August 31, 2024 contract year: Initial payment per child 50,000 20,000 Monthly fee per child a. 330,000 b. 438,000 c. 660,000 d. 990,000 1,180,000 1,840,000 1,640,000 500,000 3,000 5,000 Number of children 15 12 9 The entity received P990,000 of initial payments on September 1, 2023, and P324,000 of monthly fees during the period September 1 through December 31, 2023. 26 On December 31, 2023, what amount should be reported as deferred revenue?
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