Use the information given below to answer Questions 34 - 35.SST Jetski Corp. has sold motorized watercraft for a number of years andfollows ASPE. Starting from 2020, SST decided to include a free warrantyon each watercraft to meet competition on a national basis. The warrantycovers repair costs for the following 2 years. Management estimates thatthe cost of providing the warranty is $100 per unit sold. Other factsfollows:- SST's sales for 2020 totalled 25,000 units and 35,000 units in 2021with a selling price of $1,000 per unit. All sales were on credit.- Actual warranty costs incurred were $750,000 in 2020 and$3,400,000 in 2021.- SST is considering to go public in 2021. Based on similartransactions 5% of the sales price would be allocated to warrantysales.[34] Under an assurance type warranty, the journal entry required torecord the sales made during 2020 would be:Select one:a. (dr) Accounts Receivable $25,000,000; (cr) Sales Revenues$25,000,000.O b. (dr) Accounts Receivable $25,000,000; (cr) Sales Revenues$23,750,000; (cr) Warranty liability $1,250,000.O c. (dr) Accounts Receivable; (cr) Warranty Revenues $1,250,000;(cr) Sales Revenues $23,750,000.d. None of the above.[35] Assume for this part that SST went public and the warranty revenueis earned evenly over the two-year contract term, the journal entryrequired to record the sales made during 2021 would be:Select one:a. (dr) Accounts Receivable $35,000,000; (cr) Sales Revenues$35,000,000.b. (dr) AGalls and notifications wilkvibrate$1,750,000; (cr) Sales Revenues $33,250,000.O c. (dr) Accounts Receivable $35,000,000; (cr) Warranty Revenues$1,750,000; (cr) Sales Revenues $33,250,000.O d. (dr) Accounts Receivable $35,000,000; (cr) Sales Revenues$31,500,000; (cr) Unearned Revenues $3,500,000. [36] Truck Tyres Co., recorded gross salaries for the month amounting to$160,000. QPP deductions were $2,520, El deductions were $1,820. Incometax withheld was $50,000 and $2,400 was withheld for investment incompany stock per agreement with certain employees.What would be the total amount to remit to the government given thatTruck Tyres must remit income tax deducted, QPP and El deducted aswell as employer portion of QPP (match deduction from employee)and El of 1.4 times deduction from employees?Select one:a. $61,808.b. $59,408.c. $54,340.d. $59,168.e. $55,068.

QPP is Quality Payment Program is designed for rewarding…

Answered: SST Jetski Corp. has sold motorized…

SST Jetski Corp. has sold motorized watercraft for a number c follows ASPE. Starting from 2020, SST decided to include a fre

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

Prepare journal entry for delivery of equipment. A leading vegetable organic farm named Fresh organics wants to purchase a harvest machine from Murray where the contract stipulated to pay P150,000 as advance payment on Dec 1 2020. Harvester cost of P110,000 delivered on Dec 30, 2020.
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 completed on June 18, 2025). (a) How much revenue does Sarasota record on January 2, 2025? Revenue $
Bridgeport Company sells goods that cost $258,000 to record company for $352,600 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $34,400. The standalone selling price of the goods is $318,200. The installation is considered a separate performance application and is expected to take six months to complete (installation was completed on June 18, 2025). How much income should Bridgeport report related to its sale to Ricard in its income statement prepared for the quarter ended March 31, 2025? Gross profit:
On June 1, 2025, Oriole Company sells $185,000 of shelving units to a local retailer, Blue Spruce, which is planning to expand its stores in the area. Under the agreement, Blue Spruce asks Oriole to retain the shelving units at its factory until the new stores are ready for installation. Title passes to Blue Spruce at the time the agreement is signed. The shelving units are delivered to the stores on September 1, 2025, and Blue Spruce pays in full. Prepare the journal entries for this bill-and-hold arrangement (assuming that conditions for recognizing the sale as a bill-and-hold sale have been met) for Oriole on June 1 and September 1, 2025. The cost of the shelving units to Oriole is $89,000. (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. List all debit entries before credit entries. Record journal entries in the order presented in the…
Accounting Q Corporation buys several new passenger vehicles for its sales staff. Which of the following is true (2020 numbers; half year convention; 5 year property)? Group of answer choices If the vehicles cost more than $50,500 each, annual cost recovery deductions will be lower than the amount determined using the rate schedule. If the vehicles cost less than $50,500, first year cost recovery per vehicle= $10,100. If the vehicles cost more than $50,500 each, the cost recovery period will be six years. If the vehicles cost more than $50,500 each, the cost recovery method is straight line.
On June 1, 2020 Comfort Creamery Corp. purchased 9,000 wooden barrels on account for $900,000 (purchase price of $100/barrel). The terms of the purchase were 2/10, n/30. Comfort Creamery Corp. accounts for such purchases using the net method. Required: 1. Prepare the journal entry to record the purchase of 9,000 wooden barrels. 2. Comfort Creamery Corp. paid for the barrels on June 17, 2020. Prepare the journal entry to record the payment for the 9,000 wooden barrels.
On May 10, 2020, Cullumber Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $1,980 on July 15, 2020. The cost of the goods is $1,280. Cullumber delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Cullumber related to this contract. Either party may terminate the contract without compensation until one of the parties performs.
The following items were selected from among the transactions completed by PT Day6 during 2019, which hold trading latest product, Smartphone XY & Tablet xỶ. 1. On June 10, Smartphone XY total sales were Rp600,000,000, which includes a 10% sales tax. 2. On July 7, Tablet XY total sales were Rp1,400,000, excluding 10% sales tax. 3. On August 31, PT Day6 sold Rp400,000,000 of Smartphone QZ during August under a one-year warranty. The cost to repair defects under the warranty is estimated at 6% of the sales price. 4. On December 15, PT Day6 performed service to a customer that was paid Rp160,000,000 last month. Instructions: Prepare PT Day6's journal entries to record all the transactions during 2019
Cullumber Construction Co. uses the percentage-of-completion method. In 2024, Cullumber began work on a contract for $23200000; it was completed in 2025. The following cost data pertain to this contract: Year Ended December 31 2024 2025 Cost incurred during the year $8736000 $5720000 Estimated costs to complete at the end of year 5824000 The amount of gross profit to be recognized on the income statement for the year ended December 31, 2025 is ○ $3456000. ○ $8744000. $2920000. $3560000.
On May 1. 2020, Indigo Inc entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $826 in advance on May 15, 2020. Kickapoo pays Indigo on May 15, 2020, and Indigo delivers the mower (with cost of $511) on May 31, 2020. (a) Prepare the journal entry on May 1, 2020, for Indigo. (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 Debit Credit May 1, No Entry 2020 (b) Prepare the journal entry on May 15, 2020, for Indigo. (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 May 15. Debit Credit Cash 826 2020 un (C) Prepare the journal…
Concord Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. 1. 2. 3. 4. Truck #1 has a list price of $40,350 and is acquired for a cash payment of $37,391. Truck #2 has a list price of $43,040 and is acquired for a down payment of $5,380 cash and a zero-interest-bearing note with a face amount of $37,660. The note is due April 1, 2021. Concord would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has an incremental borrowing rate of 8%. Truck #3 has a list price of $43,040. It is acquired in exchange for a computer system that Concord carries in inventory. The computer system cost $32,280 and is normally sold by Concord for $40,888. Concord uses a perpetual inventory system. Truck #4 has a list price of $37,660. It is acquired in exchange for 900 shares of common stock in Concord Corporation. The…
On May 1, 2020, Culver Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $942 in advance on May 15, 2020. Kickapoo pays Culver on May 15, 2020, and Culver delivers the mower (with cost of $585) on May 31, 2020.(a) Prepare the journal entry on May 1, 2020, for Culver. (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.) Date Account Titles and Explanation Debit Credit May 1, 2020 enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount (b) Prepare the journal entry on May 15, 2020, for Culver. (Credit account titles are automatically indented when the…