Question 1 of 7-/ 1>Kingbird, Inc. owns the following assets at December 31, 2020:Cash in bank savings account$47,000Chequing account balanceCash on hand14,000Postdated cheque from Blossom CompanyRefund due (overpayment of income taxes)30,000Cash in a foreign bank (CAD equivalent)Preferred shares acquired shortly before their fixed maturity date15,000Debt instrument with a maturity date of three r(a1)If Kingbird follows ASPE and follows a policy of including all possible items in cash and cash equivalent, what amount should bereported as cash and cash equivalents? (Do not leave any answer field blank. Enter O for amounts.)Cash and cash equivalents under ASPE$(a2)If Kingbird follows IFRS what amount should be reported as cash and cash equivalents?Cash and cash equivalents under IFRS2$II Question 2 of 7>-/ 1View PoliciesCurrent Attempt in ProgressTo promote the sale of some specialty goods, Sage Hill Ltd. began a generous return policy to its customers. Customers can returnmerchandise for up to three months following the date of the invoice, no questions asked. For the current period, sales of thesespecialty goods totalled $37,30O. Sage Hill chooses to estimate any expected sales returns at the end of each reporting period,rather than recording the Refund Liability at the point of sale. At the end of the reporting period, Sage Hill estimates thatoutstanding returns will be $3,700. Assuming Sage Hill follows IFRS, prepare the required adjusting journal entry at the end of thereporting period. (Credit account titles are automatically indented when 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.Account Titles and ExplanationDebitCreditII

We’ll answer the first question since the first question is incomplete, hence the solution to the…

To promote the sale of some specialty goods, Sage Hill Ltd. began a generous return policy to its customers. Customers can return merchandise for up to three months following the date of the invoice, no questions asked. For the current period, sales of these specialty goods totalled $37,30O. Sage Hill chooses to estimate any expected sales returns at the end of each reporting period, rather than recording the Refund Liability at the point of sale. At the end of the reporting period, Sage Hill estimates that outstanding returns will be $3,700. Assuming Sage Hill follows IFRS, prepare the required adjusting journal entry at the end of the reporting period. (Credit account titles are automatically indented when 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. Account Titles and Explanation Debit Credit

To promote the sale of some specialty goods, Sage Hill Ltd. began a generous return policy to its customers. Customers can return merchandise for up to three months following the date of the invoice, no questions asked. For the current period, sales of these specialty goods totalled $37,30O. Sage Hill chooses to estimate any expected sales returns at the end of each reporting period, rather than recording the Refund Liability at the point of sale. At the end of the reporting period, Sage Hill estimates that outstanding returns will be $3,700. Assuming Sage Hill follows IFRS, prepare the required adjusting journal entry at the end of the reporting period. (Credit account titles are automatically indented when 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. Account Titles and Explanation Debit Credit

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

On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112.500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of Loudoun's recording the restablishment of the receivable on April 4, Year 2? Cash 蛋蛋蛋白 NA a. b. NA C. NA d. NA Assets Multiple Choice + Net Realizable Value - 1,050 (1,050) (1,050) (1,050) 1,050 (1,050) Option A Option Balance Sheet Option C Liabilities + Accounts Payable + NA + NA (1,050) 1,050 + Stockholders' Equity Retained earnings NA (1,050) NA NA Common Stock NA NA NA (1,050) Revenue NA (1,050) NA NA Income Statement Expenses NA NA NA 1,050. = Net Income NA (1,050) NA (1,050) Statement of Cash Flows NA NA NA NA
Flint Taco Palace sells 280 gift cards at $50 per gift card and 140 of the gift cards are redeemed by year-end. Flint estimates that it wi have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, eg. 0.2456 and final answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Cash Unearned Gift Card Revenue Subscriptions Revenue. Debit 14000 Credit 7000 7000
Tauros Company’s usual sales terms are net 60 days, FOB Shipping point. Sales, net of returns and allowances, totaled P2,300,000 for the year ended December 31, 2022, before year-end adjustments. Additional data are as follows: · On December 27, 2022, Taurus authorized a customer to return, for full credit, goods shipped and billed at P50,000 on December 15, 2022. The returned goods were received by Taurus on January 4, 2023, and a P50,000 credit memo was issued and recorded on the same date. · Goods with an invoice amount of P80,000 were billed and recorded on January 3, 2023. The goods were shipped on December 30, 2022. · Goods with an invoice amount of P100,000 were billed and recorded on December 30, 2022. The goods were shipped on January 3, 2023. The adjusted net sales for 2022 should be? a. 2,300,000b. 2,250,000c. 2,230,000d. 2,070,000
CH Inc. is preparing its interim financial statements for the period ending March 31, 2021. The following relate to the transactions during the 1* quarter. a. Total sales for the interim period was P 1,000,000. b. Cost of sales was P 450,000. c. Poseidon Inc. is liable for 5% commission on its sales to its sales representatives and agents. No commission has yet been paid as of March 31, 2021. d. The allowance for doubtful accounts has a balance of P 5,000 as of January 1, 2021. The required balance as of March 31, 2021 is P 15,000. There were no write-offs or recoveries during the period. e. A building with historical cost of P 1,200,000 is being depreciated over 5 years using the straight-line method. f. Poseidon Inc. prepaid a one-year insurance on its assets for P 40,000 on January 1, 2021. g. Property taxes for 2021 amounting to P 26,000 was paid in January 3, 2021. h. Advertising costs of P 50,000 were incurred in February on promotional activities held on Valentine's Day. i.…
Mimay Store sells gift certificates redeemable for store merchandise. The certificates expire one year after their issuance. Mimay has the following information pertaining to its gift certificates sales and redemptions: Unearned on December 31, 2005 600,000 2006 sales 2,000,000 2006 redemptions of prior-year sales 200,000 2006 redemptions of current-year sales 1,400,000 Mimay's experience indicates that 10% of gift certificates sold will not be redeemed. Mimay uses PFRS 15. In its December 31, 2006 statement of profit or loss, what amount should Mimay report as total revenue relating to gift certificates?
On July 10, 2020, Cheyenne Music sold CDs to retailers on account and recorded sales revenue of $658,000 (cost $506, 660). Cheyenne grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Cheyenne and were granted credit of $80,000. Prepare Cheyenne's journal entries to record (a) the sale on July 10, 2020, and (b) $80,000 of returns on October 11, 2020, and on October 31, 2020. Assume that Cheyenne prepares financial statement on October 31, 2020. (To record sales) (To record cost of goods) (To record sales returns) (To record cost of goods returned)
Cinnamon Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 150,000 award credits and expects that 80% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is measured reliably at P3,000,000. In 2019, the entity sold goods to customers for a total consideration of P12,000,0000 based on a standalone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2019 45,000 80% 2020 22,500 90% What is the revenue from points for 2019? What is the revenue from points for 2020?
On July 10, 2020, Tamarisk Music sold CDs to retailers on account and recorded sales revenue of $657,000 (cost $538,740). Tamarisk grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Tamarisk and were granted credit of $84,200.Prepare Tamarisk’s journal entries to record (a) the sale on July 10, 2020, and (b) $84,200 of returns on October 11, 2020, and on October 31, 2020. Assume that Tamarisk prepares financial statement on October 31, 2020. (Credit account titles are automatically indented when 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.) No. Date Account Titles and Explanation Debit Credit (a) enter an account title to record sales on July 10, 2017 enter a debit amount…
ded Carnegie Corp. commissions, produces, and sells books through faith-based nonprofit organizations. The books are sold on the basis that a maximum of 50% of the quantity purchased can be returned within six months. The contract with the customer outlines the amount of consideration and the return policy and that payment is due within 30 days of the end of the return period. Carnegie has a good historical record of the proportion of books returned, on average. On 1 June, Carnegie sold $86,000 worth of books. On 15 August, $8,600 were returned, and on 3 October, an additional $17,200 were returned. The payment for the balance owing was received on 20 December. The cost of the books is 55% of the selling price. All of the returns are put back into inventory and can be resold. Required: 1. This part of the question is not part of your Connect assignment. 2. Prepare the appropriate journal entries that are required for the described transactions. (If no entry is required for a…
Please answer the question correctly. Thank you.
Davis Inc. uses the gross method for recording purchase and sales discounts. They had the following transactions occur in October of 2022. Oct 1: Purchased inventory costing $5000, terms 2/10, n/30. Oct 8: Paid for the inventory purchased on Oct 1. Oct 18: Returned one-half of the inventory purchased on Oct 1 back to the supplier. The supplier will apply the return against future payables for Davis. Record the October transactions in the general journal assuming Davis Inc. uses the periodic and perpetual inventory.
Evergreen Company sells lawn and garden products to wholesalers. The company’s fiscal year-end is December 31. During 2021, the following transactions related to receivables occurred: Feb. 28 Sold merchandise to Lennox, Inc., for $10,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note. Mar. 31 Sold merchandise to Maddox Co. that had a fair value of $7,200, and accepted a noninterest-bearing note for which $8,000 payment is due on March 31, 2022. Apr. 3 Sold merchandise to Carr Co. for $7,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash discounts. 11 Collected the entire amount due from Carr Co. 17 A customer returned merchandise costing $3,200. Evergreen reduced the customer’s receivable balance by $5,000, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $50,000 to a factor without recourse. The factor…