Sarasota Company sells goods that cost $324,000 to Ricard Company for $442,800 on January 2, 2025. The sales price includes an installation fee, which has a stand-alone selling price of $43,200. The standalone selling price of the goods is $399,600. The installation is considered a separate performance obligation and is expected to take 6 months to complete (installation was completec on June 18, 2025). (a) How much revenue does Sarasota record on January 2, 2025? Revenue $

Sarasota Company sells goods that cost $324,000 to Ricard Company for $442,800 on January 2, 2025. The sales price includes an installation fee, which has a stand-alone selling price of $43,200. The standalone selling price of the goods is $399,600. The installation is considered a separate performance obligation and is expected to take 6 months to complete (installation was completec on June 18, 2025). (a) How much revenue does Sarasota record on January 2, 2025? Revenue $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Jojo LtdJojo Ltd manufactures products, Abbisha and Babbisha, from raw material, Zaro. The raw material is imported at a cost of R15 per kilogram from Garwe Limited, a foreign company. As a result of a fire that destroyed the warehouse of the supplier, the 2020 import of Zaro will be limited to 80% of the quantity imported in 2019.Following the restrictions on raw material imports, labour hours will, according to estimate, reduce by 10 000 hours in comparison with those worked in 2019. The management of the company, however, has decided to maintain a minimum wage rate of R6 per hour.The following is an extract from the budget for the 2020 financial year based on 95% of the available machine hours.Abbisha BabbishaSales volume in units 12 000 16 000Sales volume in rands R348 000 R512 000R RStandards per unitRaw material - Zaro 12.00 7.50Labour 4.50 3.00Overheads 3.00 5.00The budgeted, fixed manufacturing overheads for the year amount to R63 800. Overheads are allocated to production at a…
On January 1, 2021, VvV Shop received from ABC 300 pieces of bread toasters. VVV was to sell these on consignment at 50% above original cost, for a 15% commission on the selling price. After selling 200 pieces, vwV had the remaining unsold units repaired for some electrical defects for which he spent P2,000. ABC subsequently increased the selling price of the remaining units to P330 per unit. On January 31, 2021, VVV remitted P64,980 to ABC after deducting the 15% commission, P850 for delivery expenses of sold units, and P2,000 for the repair of 100 units. The consigned goods cost ABC P200 per unit, and P900 had been paid to ship them to Vv Shop. All expenses in connection with the consignment were reimbursable to the consignee. Determine the value inventory to be presented in the statement of financial Position.
1. What is the contract revenue for 2020? 2. What amount should be reported as deferred contract revenue on December 31, 2020?
10. On January 1, 2017, Fryer Company enters into a contract to supply 600 pastry frying rhachines to a regional donut retailer. The machines will be delivered at a rate of 25 machines per month over 2 years at a transaction price of $1,000 per machine. The salesperson received a $36,000 sales commission on the date the contract was signed. The journal entry to record the transaction on January 1 will include a a. debit Prepaid Sales Commissions for $36,000. b. debit Sales Commission Expense for $36,000. c. credit Sales Revenue $600,000. d. credit Sales Revenue $564,000.
Current Attempt in Progress Cullumber Company sells goods that cost $295,000 to Mark Company for $415,000 on January 2, 2023. The sales price includes an installation fee, which is valued at $39,100. The fair value of the goods is $385,900. The goods were delivered on March 1, 2023. Installation is considered a separate performance obligation and was completed on June 18, 2023. Under the terms of the contract, Mark pays Cullumber $267,000 on delivery of the goods and the balance at the completion of the installation. (a) Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Cullumber. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25% and final answers to O decimal places, e.g. 5,275.) Performance Obligation Deliver goods Installation Total eTextbook and Media List of Accounts Save for Later When? $ $ How much? Attempts: 0 of 2 used Submit Answer (b) The parts of this question must be completed in…
Commonly Corp. agrees to sell 100 of its products to M&H Co. for P30, 000 in August 2021. (P300 per product). Over the following six months, M&H will get the goods. The contract is updated after 60 items have been delivered, and Communion agrees to supply 80 more items for an extra P21, 600 (P270 per station) 90 more goods were supplied by commonly towards the conclusion of the year. Every sale is cash-on-delivery. Assume that the extra clause represents a potential amendment to the original contract. What annual income will be reported on the contract?
A company delivers goods to the customer for $389,000 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $140,000. The standalone selling price of the goods is $360,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. How much Unearned Service Revenue will the company record on Jan. 2, 2020? (If the company should not record any Unearned Service Revenue on Jan. 2, 2020, then enter 0.) (Do not round your answer in any part of the computation.)
At December 31, 2020, Shamrock, Ic., a manufacturer, has outstanding noncancelable purchase commitments for 63,000 pounds of raw material to be used in its manufacturing process. The purchase commitments require Shamrock, Inc. to pay $14 per pound for the raw material. The company prices its raw material inventory at cost or market, whichever is lower. (a2) Assuming that the market price as of December 31, 2020, is $10.00, record the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31
On March 10, 2020, Pharoah Company sold to Barr Hardware 180 tool sets at a price of $51 each (cost $29 per set) with terms of n/60, f.o.b. shipping point. Pharoah allows Barr to return any unused tool sets within 60 days of purchase. Pharoah estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2020, Barr returned 6 tool sets and received a credit to its account. (a) Prepare journal entries for Pharoah to record (1) the sale on March 10, 2020, (2) the return on March 25, 2020, and (3) any adjusting entries required on March 31, 2020 (when Pharoah prepares financial statements). Pharoah believes the original estimate of returns is correct. (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 0 for the amounts.) Your answer is correct. No.…
Caroline company sells equipment service contracts that cover a two-year period. The sale price of each contract is P600. The past experience is that, of the total pesos spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. The entity sold 1,000 contracts evenly throughout 2017. What amount should be reported as deferred contract revenue on December 31, 2017?
On January 1, 2017, Purdy Company enters into a contract to transfer Blue and Rain to Georgia Co. for $300,000. The contract specifies that payment for Blue will not occur until Rain is also delivered. In other words, payment will not occur until both Blue and Rain are transferred to Georgia. Purdy determines that standalone prices are $110,000 for Blue and $190,000 for Rain. Purdy delivers Blue to Georgia on February 10, 2017. On March 15, 2017, Purdy delivers Rain to Georgia. Purdy should record
On September 1, 2015, Bea company entered into a 6-month, P2,600.000 purchase commitment for a supply of a special product on Feb. 28, 2016. On December 31, 2015, the market value of this material had fallen to P2,500.000. On Feb. 28, 2016, the market value of the purchase commitment is P2,450.000. 1.) What is the entry on December 31, 2015?