Required: For each of the transactions, if revenue is to be recognized in September, indicate the revenue account title and amount. Note: If revenue is not recognized choose "None". Amount of Revenue Activity Revenue Account Title Earned in September a. b. C. d. e. f. g. h. i. j. k. 1. m. Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to be entitled to receive. Assume that the following transactions occurred in September: a. A popular ski magazine company receives a total of $12,345 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. b. On September 1 of the current year, a bank lends $1,400 to a company; the note principal and $168 ($1,400 × 12 percent) annual interest are due in one year. Answer from the bank's standpoint. c. Fucillo Automotive Group (offering a wide variety of car and truck brands) sells a Ford F-150 truck with a list, or "sticker," price of $20,150 for $19,950 cash. d. Macy's department store orders 1,160 men's shirts for $30 each for future delivery from PVH Corporation, manufacturer of IZOD, ARROW, Van Heusen, Calvin Klein, and Tommy Hilfiger and other brand-name apparel. The terms require payment in full within 30 days of delivery. Answer from PVH Corporation's standpoint. e. PVH Corporation completes production of the shirts described in (d) and delivers the order. Answer from PVH's standpoint. f. PVH Corporation receives payment from Macy's for the events described in (d) and (e). Answer from PVH's standpoint. g. A customer purchases a ticket from American Airlines for $600 cash to travel the following January. Answer from American Airlines's standpoint. h. Ford Motor Company issues $20.6 million in new common stock. i. Michigan State University receives $18,940,000 cash for 76,000 seven-game season football tickets to be played in the upcoming season. j. Michigan State plays the first football game referred to in (). k. Precision Builders signs a contract with a customer for the construction of a new $1,680,000 warehouse. At the signing, Precision receives a check for $201,000 as a deposit on the future construction. Answer from Precision's standpoint. 1. Best Buy receives inventory of 19 laptop computers from Dell; Best Buy promises to pay $9,500 within three months. Answer from Dell's standpoint. m. Amazon.com delivers a $150 lamp to a customer who charges the purchase on his Amazon.com Store Card. Answer from Amazon's standpoint.

Required: For each of the transactions, if revenue is to be recognized in September, indicate the revenue account title and amount. Note: If revenue is not recognized choose "None". Amount of Revenue Activity Revenue Account Title Earned in September a. b. C. d. e. f. g. h. i. j. k. 1. m. Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to be entitled to receive. Assume that the following transactions occurred in September: a. A popular ski magazine company receives a total of $12,345 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. b. On September 1 of the current year, a bank lends $1,400 to a company; the note principal and $168 ($1,400 × 12 percent) annual interest are due in one year. Answer from the bank's standpoint. c. Fucillo Automotive Group (offering a wide variety of car and truck brands) sells a Ford F-150 truck with a list, or "sticker," price of $20,150 for $19,950 cash. d. Macy's department store orders 1,160 men's shirts for $30 each for future delivery from PVH Corporation, manufacturer of IZOD, ARROW, Van Heusen, Calvin Klein, and Tommy Hilfiger and other brand-name apparel. The terms require payment in full within 30 days of delivery. Answer from PVH Corporation's standpoint. e. PVH Corporation completes production of the shirts described in (d) and delivers the order. Answer from PVH's standpoint. f. PVH Corporation receives payment from Macy's for the events described in (d) and (e). Answer from PVH's standpoint. g. A customer purchases a ticket from American Airlines for $600 cash to travel the following January. Answer from American Airlines's standpoint. h. Ford Motor Company issues $20.6 million in new common stock. i. Michigan State University receives $18,940,000 cash for 76,000 seven-game season football tickets to be played in the upcoming season. j. Michigan State plays the first football game referred to in (). k. Precision Builders signs a contract with a customer for the construction of a new $1,680,000 warehouse. At the signing, Precision receives a check for $201,000 as a deposit on the future construction. Answer from Precision's standpoint. 1. Best Buy receives inventory of 19 laptop computers from Dell; Best Buy promises to pay $9,500 within three months. Answer from Dell's standpoint. m. Amazon.com delivers a $150 lamp to a customer who charges the purchase on his Amazon.com Store Card. Answer from Amazon's standpoint.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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Question

Required:
For each of the transactions, if revenue is to be recognized in September, indicate the revenue account title and amount.
Note: If revenue is not recognized choose "None".
Amount of Revenue
Activity
Revenue Account Title
Earned in September
a.
b.
C.
d.
e.
f.
g.
h.
i.
j.
k.
1.
m.

Transcribed Image Text:Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to be entitled to receive. Assume that the following transactions occurred in September: a. A popular ski magazine company receives a total of $12,345 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. b. On September 1 of the current year, a bank lends $1,400 to a company; the note principal and $168 ($1,400 × 12 percent) annual interest are due in one year. Answer from the bank's standpoint. c. Fucillo Automotive Group (offering a wide variety of car and truck brands) sells a Ford F-150 truck with a list, or "sticker," price of $20,150 for $19,950 cash. d. Macy's department store orders 1,160 men's shirts for $30 each for future delivery from PVH Corporation, manufacturer of IZOD, ARROW, Van Heusen, Calvin Klein, and Tommy Hilfiger and other brand-name apparel. The terms require payment in full within 30 days of delivery. Answer from PVH Corporation's standpoint. e. PVH Corporation completes production of the shirts described in (d) and delivers the order. Answer from PVH's standpoint. f. PVH Corporation receives payment from Macy's for the events described in (d) and (e). Answer from PVH's standpoint. g. A customer purchases a ticket from American Airlines for $600 cash to travel the following January. Answer from American Airlines's standpoint. h. Ford Motor Company issues $20.6 million in new common stock. i. Michigan State University receives $18,940,000 cash for 76,000 seven-game season football tickets to be played in the upcoming season. j. Michigan State plays the first football game referred to in (). k. Precision Builders signs a contract with a customer for the construction of a new $1,680,000 warehouse. At the signing, Precision receives a check for $201,000 as a deposit on the future construction. Answer from Precision's standpoint. 1. Best Buy receives inventory of 19 laptop computers from Dell; Best Buy promises to pay $9,500 within three months. Answer from Dell's standpoint. m. Amazon.com delivers a $150 lamp to a customer who charges the purchase on his Amazon.com Store Card. Answer from Amazon's standpoint.

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