Required: (a) Did Troy pay Riker before or after delivery of the vehicle? (b) Prepare the journal entry Riker would make to record receipt of Troy's payment, assuming no interest revenue or interest expense had been recorded previously. (c) Prepare the journal entry Riker would make to record delivery of the vehicle, assuming no interest revenue or interest expense had been recorded previously.

Required: (a) Did Troy pay Riker before or after delivery of the vehicle? (b) Prepare the journal entry Riker would make to record receipt of Troy's payment, assuming no interest revenue or interest expense had been recorded previously. (c) Prepare the journal entry Riker would make to record delivery of the vehicle, assuming no interest revenue or interest expense had been recorded previously.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following is not a requirement for expense reimbursements to be an accountable plan?…

A: Reimbursement plan complies with IRS regulations, according to IRS regulations, a reimbursement plan…

Q: With the accrual basis of accounting, revenue from a credit sale is recognized Multiple Choice…

A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the expenses and…

Q: (c) Prepare the necessary journal entry to record the capitalization of interest and the…

A: pay for construction $200,000 was borrowed on March 1 on a 12%, three-year note payable. The only…

Q: The key accounting considerations relating to accounts payable are: Determining their existence and…

A: Accounts payable is a current liability. As per IAS 1, Presentation of financial statements,…

Q: typically recognized as revenue: a. when billed if they are expected to be received within the…

A: As per concept of revenue recognition revenue is recognised only based on the type of activities…

Q: Why did the loan officer ask your brother whether he used the accrual basis of accounting for…

A: The reason to ask whether he used the accrual basis of accounting for revenues and expenses may be :…

Q: 4 Blossom Company includes 1 coupon in each box of soap powder that it packs, and 5 coupons are…

A: 3 Golden rules of accounting are Real account : As per real account rule we should what comes in…

Q: Under accrual accounting, when should expenses be matched against revenue? after cash is collected…

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…

Q: Prepaid expenses are normally created as a part of the purchasing process. Prepaid energy bills,…

A: 1. To determine the accuracy of the remaining prepaid account balance, I would examine the following…

Q: What is Endorsement Of Bill? A. Extra days following the due date of the bill for making payment B.…

A: Endorsement of the bill refers to the procedure whereby the maker or holder of bill transfers the…

Q: Which of the following accounts is a non-current asset account?

A: Non-current assets: Non-current assets are assets that can be held for a longer period of time…

Q: For the entries below, identify the account to be debited and the account to be credited. Indicate…

A: The question is based on the concept of Financial Accounting.

Q: accordance with IFRS 15, customer loyalty awards on the goods or services sold, the transaction…

A: As per IFRS 15, Revenue recognition In case of sale of a product with loyalty awards,then the sales…

Q: Prepare journal entries to record the warranty expense for the period and payment for the actual…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: e of an office building B. Depreciation of vehicles C. Maintenance of machinery D. Sales discount…

A: Income statement records income and expenses. It shows the net income or loss of a company for a…

Q: 1. Consider each of the items below. Place the proper letter in the blank space provided to indicate…

A: Golden Rules of Accounting: Account Debit Credit Personal Accounts The Receiver The…

Q: If a company makes a journal entry that records a debit to “Rent Expense,” that journal entry also…

A: Journal: Recording of a business transactions in a chronological order.

Q: Which of the following is an amount for products or services purchased on account? Oaccounts payable…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: For each account, identify whether it is included in a post-closing trial balance. a. Store…

A: Solution: All temporary accounts such as revenues, expenses and dividends etc are closed to income…

Q: Prepaid expenses are normally created as a part of the purchasing process. Prepaid energy bills,…

A: Prepaid expenses are normally created as a part of the purchasing process. Prepaid energy bills,…

Q: which two accounts are used to recognize shipping charges for a buyer assuming the buyer purchases…

A: Shipping cost depends upon the terms of the contract. Generally, there are two types of conditions.…

Q: Which of the following best represents the matching principle criteria?A. Expenses are reported in…

A: Accounting principles are those rules and guidelines which helps the accountants all over the world…

Q: For journal entries 1 through 10, identify the explanation that mostly closely describes it. A. To…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Porite Company recognizes revenue in the period in which it records an asset for the related account…

A: Here the company records in the period in which it is earned rather than recording it when casflow…

Question

Riker receives $36,000 from Troy as payment for a vehicle that has a fair value of $46,600. The $36,000 constitutes full payment for
the vehicle as specified in the sales contract. Assume that the time value of money is viewed as significant for this contract.
Required:
(a) Did Troy pay Riker before or after delivery of the vehicle?
(b) Prepare the journal entry Riker would make to record receipt of Troy's payment, assuming no interest revenue or interest expense
had been recorded previously.
(c) Prepare the journal entry Riker would make to record delivery of the vehicle, assuming no interest revenue or interest expense had
been recorded previously.
Complete this question by entering your answers in the tabs below.
Req A
Req B and C
Did Troy pay Riker before or after delivery of the vehicle?
Troy paid Riker
of the vehicle.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Time Value of Money

VIEW

Step 2: Did Troy pay Riker before or after delivery of the vehicle

VIEW

Step 3: Define Journal entry to record recepit of troy payment

VIEW

Step 4: Define Journal entry to record delivery of vehicle

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 11 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Pronghorn Group has negotiated the purchase of a new piece of automatic equipment at a price of HK$6,160 plus trade-in, fo.b. factory. Pronghorn paid HK$6,160 cash and traded in used equipment. The used equipment had originally cost HK$54,560; it had a book value of HK$36,960 and a secondhand fair value of HK$40,320, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of HK$960. (a) Your answer is correct. ress Prepare the general journal entry to record this transaction, assuming that the exchange has commercial substance. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. Include in your journal entry separate account entries for both the new and old equipment. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Equipment Accumulated Depreciation Equipment Equipment Cashi…
According to U.S. GAAP, when should revenue be recognized?a. When cash is received from the customerb. When the service is performed or the goods have been delivered to the customerc. When the goods or services have been priced and offered for saled. At the stated date in the contract
Sweet Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $91,000 Contribution to the plan 106,400 Prior service cost amortization 10,800 Actual and expected return on plan assets 65,200 Benefits paid 40,500 Plan assets at January 1, 2020 633,900 Projected benefit obligation at January 1, 2020 701,600 Accumulated OCI (PSC) at January 1, 2020 149,900 Interest/discount (settlement) rate 9 %
Alternative Accounting Treatments a. Estimate the amount of liability and record. b. Do not record as a liability but disclose in a footnote to the financial statements. c. Neither record as a liability nor disclose in a footnote to the financial statements. Required: Match the appropriate alternative accounting treatment with each of the potential contingent liabilities listed below. Potential Contingent Liabilities 1. Income taxes related to revenue included in net income this year but taxable in a future year. 2. Potential costs in future periods associated with performing warranty services on products sold this period. 3. Estimated cost of future services under a product warranty related to past sales. 4. Estimated cost of future services under a product warranty related to future sales. 5. Estimated cost of pension benefits related to past employee services that has yet to be funded. 6. Potential loss on environmental cleanup suit against company; a court judgment against the…
Under the accrual basis of accounting - if cash has been received before the revenue has been earned, which of the following journal entries should be recorded? A) Debit Cash, Credit Unearned Revenue. B) Debit Cash, Credit Sales Revenue. C) Debit Unearned Revenue, Credit Cash. D) Debit Cash, Credit Accounts Receivable.
What’s the correct answer?
The accountant for Tom's Tax Preparation, Inc. recorded a transaction by debiting Accounts Payable and crediting Cash. Which of the following transactions did the account record? Group of answer choices A. The purchase of supplies on account. B. Payment to suppliers for goods originally purchased on account. C. Receiving cash from suppliers. D. Receipt of payment for services originally provided to customers on account.
None
The FASB has established a Five-Step process to recognize revenue. Which of the following is not one of those steps? A. Ability to identify the contract with the customer. B. Determination thatcollection of the entitled contractual consideration from the customer is probable. C. Properly identify all of the performance obligations within the contract. D. Ability to determine the transaction price. E. Properly identify all of the deliverables and allocate the transaction price to each.
Where is the amount of withholding on real property transactions reported on the Form 540? Select one: a. It's not; It's accounted for with a separate filing requirement with the CDTFA. b. As a credit to carry into the payments section of the Form 540 from line(s) 43-45. c. As income withholding on Line 71 d. As a payment for withholding on Line 73.
post closing activities include a. signing of the mortgage documents by the seller b. recording and title policy issuance c. creation of the settlement sheet d. title abstruction