Required information[The following information applies to the questions displayed below.]Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $4,200 per machine.HEC usually sells these machines to hospitals at a price of $7,440. HEC also separately sells 12 months of training andrepair services for fMRI machines for $1,860. HEC is paid $7,440 cash on November 30 for the sale of an fMRI machinedelivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repairservice.Required:1. For the machine sold at its regular price, but with one year of "free" training and repair service, determine the dollar amount ofrevenue earned from the equipment sale versus the revenue earned from the training and repair services.EquipmentServiceAllocatedTransactionPrice

Revenue -The money a business makes from selling products and/or rendering services to its patrons…

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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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On August 5, 2021, Cullumber Furniture shipped 50 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $470 each. The cost of shipping the dining sets amounted to $4800 and was paid for by Cullumber Furniture. On December 30, 2021, the consignee reported the sale of 40 dining sets at $970 each. The consignee remitted payment for the amount due after deducting a 5% commission, advertising expense of $720, and installation and setup costs of $900. The amount cash received by Cullumber furniture is OOOO $36140. $38800. $35240. $36860.
The following needs to entered in the copied spreadshet. 2. The following transactions occurred during the year. Record these transactions.HHL took out a long-term loan for $3 million.HHL purchased $1 million in inventory with cash.HHL purchased equipment that cost $150,000 on account. The equipment is expected to last 15 years and has no salvage value.$540,865,000 (net of allowances and charity care) was billed for patient services. The hospital estimates that 5% of these bills will be bad debt.$875,000 of inventory was used.Donations of $400,000 were received in cash.HHL pays in cash for a 2-year malpractice insurance premium at a cost of $5 million. One-half of the premium is for next year, and the other is for the following year.HHL pays $12,560,000 in accounts payable.HHL workers earned $259 million in wages for the year. The hospital paid out $282 million in cash. It also paid out $60 million in benefits, all in cash.The equipment purchased in transaction c was paid for in…
Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,380. The seller agreed to allow a 5.50 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,900. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $850. The loader operator is paid an annual salary of $13,170. The cost of the company's theft insurance policy increased by $1,980 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $5,600. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader. Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costs $ 0
Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,640. The seller agreed to allow a 5.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,230. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $970. The loader operator is paid an annual salary of $44,100. The cost of the company's theft insurance policy increased by $1,800 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $14,200 Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.
Sandhill Co. purchases a new delivery truck for $78000. The sales taxes are $4400. The logo of the company is painted on the side of the truck for $1000. The truck’s annual license is $100. The truck undergoes safety testing for $240. What does Sandhill record as the cost of the new truck?
Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians’ Leasing purchased a lithotripter from Rand for $2,260,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Lease Description: Quarterly lease payments $ 147,483—beginning of each period Lease term 5 years (20 quarters) No residual value; no purchase option Economic life of lithotripter 5 years Implicit interest rate and lessee's incremental borrowing rate 12% Fair value of asset $ 2,260,000 Required:1. How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing?2. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1,…
ATZ Corporation produces a popular brand of vacuum cleaners that is backed by a five-year warranty. The following data is given: Sales revenue $500,000 Raw materials inspections 4,800 Scrap Returns resulting from defects 7,000 Employee quality training 1,200 Regular maintenance for factory equipment 8,500 Estimate of lost sales due to quality problems 10,000 Cost of goods sold 3,100 350,000 Determine the total quality costs for ATZ Corporation.? Calculate the prevention costs ratio in the corporate sales. ? with step please?
On January 2, 2021, Oriole Hospital purchased a $94,800 special radiology scanner from Bella Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner. Annual operating costs with this scanner are $106,000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2021 from Bella Inc. was a mistake. He points out that Dyno has a scanner that will save Oriole Hospital $26,000 a year in operating expenses over its 3-year useful life. Jacob notes that the new scanner will cost $111,000 and has the same capabilities as the scanner purchased last year. The hospital agrees that both scanners are of equal quality. The new scanner will have no disposal value. Jacob agrees to buy the old scanner from Oriole Hospital for $40,500. (a) If Oriole Hospital sells its old scanner on…
Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $124,960. The seller agreed to allow a 5.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,820. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $870. The loader operator is paid an annual salary of $15,500. The cost of the.company's theft insurance policy increased by $2,320 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $7,600. Required Determine the amount to be capitalized in the asset account for the purchase of the front-end loader. Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costs
please answer all parts within 30 minutes.
In July 10, 2020, Marigold Ltd. sold $1.8 million of compressors to retailers on account. Marigold had paid $918,000 for these compressors. Marigold grants the right to return compressors that do not sell in three months following delivery. Past experience indicates that the normal return rate is 10%. By October 11, 2020, retailers returned compressors to Marigold and were granted a cash refund totalling $175,000. Marigold uses a perpetual inventory system and follows IFRS. Prepare Marigold's journal entries to record the sale on July 10, 2020. (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 O for the amounts.) Date Account Titles and Explanation July 10 July 10 Accounts Receivable Purchase Returns and Allowances Sales Revenue (To record sales on account) Cost of Goods Sold (To record cost of goods sold) Debit Credit WIN

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