Shamrock Ranch & Farm is a distributor of ranch and farm equipment. Its products range from small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company catalog and Internet site. However, given some of its specialty products, select farm implement stores carry Shamrock's products. Pricing and cost information on three of Shamrock's most popular products are as follows. Mini-trencher Power fence hole auger Grain/hay dryer Item (a) Respond to the requirements related to the following independent revenue arrangements for Shamrock Ranch & Farm. Standalone Selling Price (Cost) $3,700 ($1,900 ) (800) 15,400 (10,100) 1,100 On January 1, 2020, Shamrock sells 30 augers to Mills Farm & Fleet for $33,000. Mills signs a 6-month note at an annual interest rate of 12%. Shamrock allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Shamrock estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Shamrock's costs to recover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entry for Shamrock on January 1, 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 0 for the amounts.) (To record sales) Account Titles and Explanation (b) (To record cost of goods sold) Debit Credit On August 10, 2020, Shamrock sells 17 mini-trenchers to a farm co-op in western Minnesota on account. Shamrock provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Shamrock compared to the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly unlikely that the benchmark will be met. Prepare the journal entry for Shamrock on August 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 0 for the amounts.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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(c)
Shamrock sells three grain/hay dryers to a local farmer at a total contract price of $49,500. In addition to the
dryers, Shamrock provides installation, which has a standalone selling price of $1,100 per unit installed. The
contract payment also includes a $1,100 maintenance plan for the dryers for 3 years after installation. Shamrock
signs the contract on June 20, 2020, and receives a 20% down payment from the farmer. The dryers are delivered
and installed on October 1, 2020, and full payment is made to Shamrock. Prepare the journal entries for Shamrock
in 2020 related to this arrangement. (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. Round answers to 0 decimal places, e.g. 5.275.)
Date
Jun. 20, 2020
Save for Later
List of Accounts
(d)
+
Date
:
eTextbook and Media
Entries for
Shamrock
Jun. 30, 2020
#
Entries for Farm
Depot
Account Titles and Explanation
#
(To record payment received)
On April 25, 2020, Shamrock ships 110 augers to Farm Depot, a farm supply dealer in Nebraska, on consignment.
By June 30, 2020, Farm Depot has sold 60 of the consigned augers at the listed price of $1,100 per unit. Farm
Depot notifies Shamrock of the sales, retains a 10% commission, and remits the cash due Shamrock. Prepare the
journal entries for Shamrock and Farm Depot for the consignment arrangement. (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.)
(To record sales)
List of Accounts
(To record cost of goods sold)
Account Titles and Explanation
(To record payment received)
(To record cost of sales)
(To record consignment sales)
(To record payment)
eTextbook and Media
Debit
UUUU UU UU
Attempts: 0 of 5 used Submit Answer
Debit
UUUUU UU
חחחחח חח
Transcribed Image Text:(c) Shamrock sells three grain/hay dryers to a local farmer at a total contract price of $49,500. In addition to the dryers, Shamrock provides installation, which has a standalone selling price of $1,100 per unit installed. The contract payment also includes a $1,100 maintenance plan for the dryers for 3 years after installation. Shamrock signs the contract on June 20, 2020, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2020, and full payment is made to Shamrock. Prepare the journal entries for Shamrock in 2020 related to this arrangement. (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. Round answers to 0 decimal places, e.g. 5.275.) Date Jun. 20, 2020 Save for Later List of Accounts (d) + Date : eTextbook and Media Entries for Shamrock Jun. 30, 2020 # Entries for Farm Depot Account Titles and Explanation # (To record payment received) On April 25, 2020, Shamrock ships 110 augers to Farm Depot, a farm supply dealer in Nebraska, on consignment. By June 30, 2020, Farm Depot has sold 60 of the consigned augers at the listed price of $1,100 per unit. Farm Depot notifies Shamrock of the sales, retains a 10% commission, and remits the cash due Shamrock. Prepare the journal entries for Shamrock and Farm Depot for the consignment arrangement. (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.) (To record sales) List of Accounts (To record cost of goods sold) Account Titles and Explanation (To record payment received) (To record cost of sales) (To record consignment sales) (To record payment) eTextbook and Media Debit UUUU UU UU Attempts: 0 of 5 used Submit Answer Debit UUUUU UU חחחחח חח
Shamrock Ranch & Farm is a distributor of ranch and farm equipment. Its products range from small tools, power equipment for
trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company catalog and Internet site.
However, given some of its specialty products, select farm implement stores carry Shamrock's products. Pricing and cost information
on three of Shamrock's most popular products are as follows.
Mini-trencher
Power fence hole auger
Grain/hay dryer
Item
(a)
Respond to the requirements related to the following independent revenue arrangements for Shamrock Ranch & Farm.
On January 1, 2020, Shamrock sells 30 augers to Mills Farm & Fleet for $33,000. Mills signs a 6-month note at an annual interest
rate of 12%. Shamrock allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior
experience, Shamrock estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome
approach). Shamrock's costs to recover the products will be immaterial, and the returned augers are expected to be resold at a
profit. Prepare the journal entry for Shamrock on January 1, 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 0 for the amounts.)
Account Titles and Explanation
(To record sales)
(b)
(To record cost of goods sold)
Account Titles and Explanation
(To record sales)
Standalone
Selling Price (Cost)
$3,700 ($1,900 )
1,100 (800)
15,400 (10,100 )
On August 10, 2020, Shamrock sells 17 mini-trenchers to a farm co-op in western Minnesota on account. Shamrock provides a 4%
volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Shamrock compared to the prior year.
Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly unlikely that the benchmark will be
met. Prepare the journal entry for Shamrock on August 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 0 for the amounts.)
(To record cost of goods sold)
eTextbook and Media
List of Accounts
Save for Later
(c)
Date
Jun. 20, 2020
Debit
Account Titles and Explanation
Debit
Credit
Shamrock sells three grain/hay dryers to a local farmer at a total contract price of $49,500. In addition to the
dryers, Shamrock provides installation, which has a standalone selling price of $1,100 per unit installed. The
contract payment also includes a $1,100 maintenance plan for the dryers for 3 years after installation. Shamrock
signs the contract on June 20, 2020, and receives a 20% down payment from the farmer. The dryers are delivered
and installed on October 1, 2020, and full payment is made to Shamrock. Prepare the journal entries for Shamrock
in 2020 related to this arrangement. (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. Round answers to 0 decimal places, e.g. 5,275.)
Credit
Attempts: 0 of 5 used Submit Answer
Debit
Transcribed Image Text:Shamrock Ranch & Farm is a distributor of ranch and farm equipment. Its products range from small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company catalog and Internet site. However, given some of its specialty products, select farm implement stores carry Shamrock's products. Pricing and cost information on three of Shamrock's most popular products are as follows. Mini-trencher Power fence hole auger Grain/hay dryer Item (a) Respond to the requirements related to the following independent revenue arrangements for Shamrock Ranch & Farm. On January 1, 2020, Shamrock sells 30 augers to Mills Farm & Fleet for $33,000. Mills signs a 6-month note at an annual interest rate of 12%. Shamrock allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Shamrock estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Shamrock's costs to recover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entry for Shamrock on January 1, 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 0 for the amounts.) Account Titles and Explanation (To record sales) (b) (To record cost of goods sold) Account Titles and Explanation (To record sales) Standalone Selling Price (Cost) $3,700 ($1,900 ) 1,100 (800) 15,400 (10,100 ) On August 10, 2020, Shamrock sells 17 mini-trenchers to a farm co-op in western Minnesota on account. Shamrock provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Shamrock compared to the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly unlikely that the benchmark will be met. Prepare the journal entry for Shamrock on August 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 0 for the amounts.) (To record cost of goods sold) eTextbook and Media List of Accounts Save for Later (c) Date Jun. 20, 2020 Debit Account Titles and Explanation Debit Credit Shamrock sells three grain/hay dryers to a local farmer at a total contract price of $49,500. In addition to the dryers, Shamrock provides installation, which has a standalone selling price of $1,100 per unit installed. The contract payment also includes a $1,100 maintenance plan for the dryers for 3 years after installation. Shamrock signs the contract on June 20, 2020, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2020, and full payment is made to Shamrock. Prepare the journal entries for Shamrock in 2020 related to this arrangement. (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. Round answers to 0 decimal places, e.g. 5,275.) Credit Attempts: 0 of 5 used Submit Answer Debit
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