Unearned service revenue is composed of the following contracts: Contract # Effectivity Amount Notes 1 October 1, 2020 260,000 60% has not yet been fulfilled. 2 December 1, 2020 540,000 Services to be rendered monthly for 12 months 3 January 1, 2021 300,000 Service to be rendered monthly for 9 months. No adjusting entries have been made related to these contracts. Prepare adjusting entry for December 31, 2021

Unearned service revenue is composed of the following contracts: Contract # Effectivity Amount Notes 1 October 1, 2020 260,000 60% has not yet been fulfilled. 2 December 1, 2020 540,000 Services to be rendered monthly for 12 months 3 January 1, 2021 300,000 Service to be rendered monthly for 9 months. No adjusting entries have been made related to these contracts. Prepare adjusting entry for December 31, 2021

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

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 9MC

See similar textbooks

Similar questions

On October 1, 2019, Grahams WeedFeed Inc. signs a contract to maintain the grounds for BigData Corp. The contract ends on March 31, 2020, and has a monthly payment of 3,200. The contract does not include any stipulations for additional periods. On June 1, Grahams WeedFeed and BigData sign a new 12-month contract that is retroactive to April 1, 2020. The monthly fee for the new contract is 4,000 per month and is also retroactive to April 1, 2020. During April and May of 2020, while the new contract was being negotiated, Grahams Weed Feed continued to maintain the grounds, and BigData continued to pay 3,200 per month. BigData was satisfied with Grahams WeedFeeds performance, and the only issue during negotiations was the monthly fee. Required: Determine if a valid contract exists between Grahams WeedFeed and BigData during April and May 2020.
4. The unadjusted trial balance showed on December 31, 2018. Subscription Revenue of P390000. A magazine subscription costs P100 monthly and is payable in advance either quarterly or semi-anually. Deliveries are made on or before the 15th of the month. A review of the subcription contracts revealed the following. No. of Quartely Subscriptio n Date Sept. 1 Oct. 1 Nov. 1 No. of Semi-Annual Subcription Subcriptions 100 100 200 100 300 150 Required: a. Give the adjusting entry on December 31, 2018 b. Set up T accounts Subscription Income (start with the balance of P390000) and Unearned Subscription Income (start with zero balance). Post the adjusting entry and financial statements determine the adjusted balances that should be presented in the
Sandhill Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. Sandhill Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $455. The standalone selling price of the tablet is $234 (the cost to Sandhill Company is $171). Sandhill Company sells the Internet access service independently for an upfront payment of $270. On January 2, 2020, Sandhill Company signed 90 contracts, receiving a total of $40,950 in cash. 1. Sandhill Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $551. Sandhill Company provides the 3-year tablet service plan as a separate product with a standalone selling price of…
Windsor Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1. 2. 3. 4. 5. Prepare all of the journal entries for the lessor for 2020 and 2021 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December 31, and it does not use reversing entries. (Credit account titles are automatically inden when amount is entered. Do not ind manually. Record journal entries in the order presented in the problem.) Date 20 0 /20 The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. The cost of the asset to the lessor is $230,000. The fair value of the asset at January 1, 2020, is $230,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,339, none of which is…
Topic: REVENUE FROM CONTRACTS WITH CUSTOMERS Requirement: Provide the entries during the first 90 days of the contract (assume that the product was not returned)
Refer to the information provided in E19-13. Required: Using the years-of-future-service method, prepare a set of schedules to determine (1) the amortization fraction for each year and (2) the amortization of the prior service cost.
On October 10, 2020, Flounder Co. entered into a contract with Belisle Inc. to transfer Flounder’s specialty products (sales value of $9,200, cost of $6,500) on December 15, 2020. Belisle agrees to make a payment of $5,400 upon delivery and signs a promissory note to pay the remaining balance on January 15, 2021. What entries does Flounder make in 2020 on this contract?
Ongoing Service Contract Service Provider Company (SPC) and Customer A (CA) have recently began doing business together on a 48 month contract. The contract can be ended if either party is unsatisfied, as long as the parties are equal in terms of cash payments and services provided. Both companies follow GAAP and have a Dec 31 year end. Review the following activity in 2021 and 2022. Show your work on the PDF Upload. T accounts would be appropriate. 2021: SPC provides monthly services beginning October 1, $2,000 per month. You can assume these services are provided 021 for (earned) by SPC on an ongoing basis for this problem. * CA pays a $16,000 cash payment on October 1, 2021. A) How much revenue should SPC record from CA for the 2021? $ B) How much would SPC show as unearned revenue as of Dec 31, 2021. If none, write 0. $ C) How much I| Proctorio is sharing your screen. Dec 31, 2021 Stop sharing Hide tv MacBook Pro
On January 1, 2019, AAA insurance co. entered into reinsurance contract with CCC Co. for a premium of P2,000. Commission expense incurred on the reinsurance contract issued is 10%. How much is the amount due from ceding company (book of reinsurer)? How much is the amount of commission income recognized by cedant?
1. What is the contract revenue for 2020? 2. What amount should be reported as deferred contract revenue on December 31, 2020?
THIRTYFIRST Company must determine the December 31, 2021 year end accruals for advertising and rent expenses. A P500 advertising received January 7, 2022, comprising costs of P375 for advertisements in December 2021 issues, and P125 for advertisements in January 2022 issues of the newspaper. A store lease, effective December 16, 2020, calls for fixed rent of P1,200 per month, payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P300,00 per calendar year is payable on January 31 of the following year. Net sales for 2021 were P550,00. In the December 31, 2021 balance sheet, THIRTYFIRTS Company should report accrued liabilities. 13,475 13,000 12,875 13,100
Company must determine the December 31, 2020year-end accruals for advertising and rent expenses. A P5,000 advertising bill was received January7, 2021. It related to cost of P3,750 for advertisements in December 2020 issues and P1,250 for advertisements in January2021issues of the newspaper. A store lease, effective December 16, 2020c alls for fixed rent of P12,000 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P3,000,000 per calendar year is payable on January31 of the following year. Net sales for 2020were P5,500,000. In its December31, 2020 balance sheet, company should report accrued liabilities of

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

College Accounting, Chapters 1-27 (New in Account…

Accounting

ISBN:

9781305666160

Author:

James A. Heintz, Robert W. Parry

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

College Accounting, Chapters 1-27 (New in Account…

Accounting

ISBN:

9781305666160

Author:

James A. Heintz, Robert W. Parry

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

Contract #	Effectivity	Amount	Notes
1	October 1, 2020	260,000	60% has not yet been fulfilled.
2	December 1, 2020	540,000	Services to be rendered monthly for 12 months
3	January 1, 2021	300,000	Service to be rendered monthly for 9 months.