Pharoah Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Ivanhoe Companyemployees. The total cruise package price to Ivanhoe Company employees is $74,000. PharoahInc. receives a commission of 6% of the total price. Pharoah Inc. therefore remits $69,560 toShipAway.4440Prepare the journal entry to record (1) the receipt of payment of $74,000 from employees for thecruise packages and (2) the remittance and revenue recognized by Pharoah Inc. on thistransaction. (Credit account titles are automatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Listall debit entries before credit entries.)

Journal entries are used to record the accounting transactions in chronological order under double…

Answered: yees. The total cruise package price to…

yees. The total cruise package price to Ivanhoe Company employees is $74,000. Pharoa ceives a commission of 6% of the total price. Pharoah Inc. therefore remits $69,560 to

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Kristine is distributor of brass picture frames for P45. For 2022, she plans to purchase for P30…

A: Data given:: Selling price per unit = P 45 Purchase price per unit…

Q: NM Company is a medium-sized manufacturer of lamps. During 2021, a new line called “Excellence” was…

A: Break even point = P 400,000 Contribution margin = 40% Operating profit = P 200,000

Q: Binco Brass Corp. (BBC) is a wholesaler that sells musical instruments to retailers. On February 1…

A: Revenue should be recognised as and when performance obligations satisfies. There may be some…

Q: Pickard Company pays its sales staff a base salary of $5,600 a month plus a $2.40 commission for…

A: The extra money a salesperson receives in relation to the quantity of sales they have made is known…

Q: Determine the effect in income when the special order is accepted. Indicate whether increase or…

A: Net Income Format :- Sales (-) Variable manufacturing costs (-) Fixed manufacturing cost (-)…

Q: dit, which will affect the actual cost of asset being sold for the buyer and the seller. Consider…

A: 1/10 , net 30Discount of 1% for 10 days.

Q: Kirby company can manufacture a product for $52 per unit ($36 variable and $16 fixed), a foreign…

A: Special order decisions are useful form of decisions being taken in business. Under this,…

Q: A dining set costs a company $2,300 to manufacture. If it sells for $5,175, what is the percent…

A: Solution... Cost = $2,300 Sales = $5,175 Markup on cost = ?

Q: P3-5.Asupplier'selis MF Tiresto dealers. The annual.demandis approximately 1.000 tires The supplier…

A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

Q: Apex Company sells a product for $220 per unit. The variable cost is $170 per unit, and fixed costs…

A: The Break-even point is the point where the company does not earn profit nor does it incur a loss in…

Q: Carryon Company sells a product and a 12-month service package for that for a combined price of…

A: Calculate the allocated price to product.

Q: Angel Company expects to sell 500,000 units in 2021 at P50 per unit. Variable manufacturing costs in…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: CARLA COMPANY MANUFACTURES EQUIPMENT. UNITS SELLING PRICE RANGE FROM 200,000 TO 1,500,000 AND ARE…

A: As per the accounting standard (IFRS) Revenue from contracts with customers which is based on 5 step…

Q: Sea-Jet Companies produces jet skis. Variable direct costs total $ 2,000 per unit. Variable indirect…

A: 6) Sales - Variable cost = Contribution Here, selling price = $5000 per unit Variable cost per unit…

Q: Affiliate A sells 5,600 units to Affiliate B per year. The marginal income tax rate for Affiliate A…

A: Marginal tax rate represents the maximum tax rate, the marginal tax rate refers to the highest…

Q: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $313 plus a…

A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…

Q: undle Company makes a product that sells for $33 per unit. The company pays $22 per unit for the…

A: A margin of safety is an investing principle that states that an investor should only purchase…

Q: XYZ Company spends 300,000 dollars on raw materials, 100,000 dollars on a fixed cost, and 150,000…

A: Percentage of the profit change = (Profit after discount - Profit before discount) / Profit before…

Q: Basti Co. delivered 150 portable gas stoves to Sarah Co. on consignment. These stoves cost P2,700…

A: Consignment: Consignment accounting is the process of accounting for both consignor and consignee…

Q: The Kidz Klothing store ordered a line of snowsuits at $60 each, less a trade discount of 8%. The…

A: Trade discount is given on the list price of the product. This discount is not recorded in the books…

Q: Camp Corporation produces a single product that it currently sells for P10. Fixed expenses are…

A: Advertising expense is a fixed cost. So the total fixed cost will be P130,000 (120,000 + 10,000).

Q: Travel Agency specializes in flights between Toronto and Peru. It books passengers on Toronto Air.…

A: Break-even point (in units) =fixed cost/ contribution margin per unit Units to be sold to get target…

Q: how much commission should the agency receives?

A: Given information is: Last month Kir’s agency booked Php 140, 500 in airline fares on Galaxay…

Q: Tambi Corporation produce its product which requires an input for $72,30 per kilogram from the…

A: >Standard costs are set by the management to have a control on actual costs to be considered.…

Q: Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $ 1,507…

A: Traditional Method Traditional income statement is a formal presentation of all income and expenses…

Q: 55. P&C Travel Agency specialize in flight between India and Malaysia. It books passengers on…

A: Travel agency refers to that agency which is engaged in tourism related services. Travel agency can…

Q: Chinook Corporation sells a single product for $75 per unit. During the current year Chinook reports…

A: Introduction:- Break-even point point means, where no profit or loss At Break-even point point,…

Q: Rizal Co. consigns 30 hardware products to Bonifacio Co. on January 1, 20x1. The unit cost per…

A: The net income is the amount of profit earned on the sale of the products after deducting all the…

Q: Leo Consulting enters into a contract with Highgate University to restructure Highgate's processes…

A: The transaction price is the total amount of consideration or payment that a company expects to…

Q: The Deluxe Register Company sells 1,000 register books annually at a price of $35 each. If the…

A: Markup of selling price means the amount (Profit) which is added to the cost of item to determine…

Q: Zack Co. sells three sizes of bags: small, medium, and large. The company has annual fixed costs of…

A: For calculating the break evensale with different products , we need use the following formula :-…

Q: ABC Co. delivered 150 portable gas stoves to DEF Co. on consignment. These stoves cost P2,700 each…

A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…

Q: Lee Company pays its employees on a variable commission scale: 6% on the first $40,000 sales, 7% on…

A: Introduction: As per variable commission pay mechanism, employees are paid on the basis of total…

Q: Detox corp planned to sell 25,000 units during the next quarter at a selling price of P52 per unit.…

A: Income and expenses of an entity will be displayed in its income statement where it has all the…

Q: Mahrouq Technologies buys $13,431,550 of materials (net of discounts) on terms of 4/30, net 60, and…

A: Additional financing means the amount which a firm is required to borrow from outside for the…

Q: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a…

A: Variable cost per copy using high-low method (Highest Cost - Lowest Cost) / (Highest No. of Copies -…

Q: ABC Ltd is marketing a ‘surfing bundle’ in which, for $3200, it provides customers with a surfboard…

A: Total sales price if sold separately = surfboard + wetsuit + five lessons = 2550+750+600 = $3,900

Question

Pharoah Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Ivanhoe Company
employees. The total cruise package price to Ivanhoe Company employees is $74,000. Pharoah
Inc. receives a commission of 6% of the total price. Pharoah Inc. therefore remits $69,560 to
ShipAway.
4440
Prepare the journal entry to record (1) the receipt of payment of $74,000 from employees for the
cruise packages and (2) the remittance and revenue recognized by Pharoah Inc. on this
transaction. (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. List
all debit entries before credit entries.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction -

VIEW

Step 2: Journal entries

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Midwest Airlines flies a short nonstop with 148-passenger planes. Considering all the costs of owning each plane plus the salaries for their crews and the fuel costs and landing fees, the fixed cost for a single flight is $16,500. If the costs associated with each passenger (reservations cost, check-in cost, baggage handling cost, snack cost, etc.) total $75 per passenger and the average ticket price is $214 (before the various taxes are added), what percentage of seats must be filled for the flight to break even?
Oriole Company sells 455 units for $290 each to Sheffield Inc. for cash. Oriole allows Sheffield to return any unused product within 30 days and receive a full refund. The cost of each product is $174. To determine the transaction price, Oriole decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the most likely amount. Using the most likely amount, Oriole estimates that ten (10) units will be returned, the costs of recovering the units will be immaterial, and the returned units are expected to be resold at a profit. What amount of refund liability should Oriole record at the time of sale? $1740 O $2900 $1160 O $0
The product costs the company $66 to manufacture. The company desires a 97% mark-up on all products. State the product's selling price to the nearest dollar.
Sea-Jet Companies produces jet skis. Variable direct costs total $ 2,000 per unit. Variable indirect costs total $ 600 per unit. Fixed overhead costs total $ 700,000. The company pays sellers a commission of $ 400 per unit sold. Total fixed costs for the period add up to $ 200,000. Each watercraft sells for $ 5,000. The company taxes its earnings at 25%. How many $ do you have to sell to make $ 180,000 profit before tax
NAPAPALUNOK AKO AS OF THE MOMENT INC. sells 3-year service contracts for air conditioning units for P1,500 each. Sales of service contracts are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year, and 50% in the third year. Service contracts sold are as follows. How much is the unearned revenue from service contracts as of December 31, 2019? Use the information given. How much is the unearned revenue from service contracts as of December 31, 2020? a. P4,657,125 b. P3,468,750 c. P2,475,000 d. P1,237,500
Adiwele Ltd has a financial year end of 31 March. The entity manufactures Compact Discs for resale. The manufacturing cost per compact disc is R2 per unit. Finished units of the compact disc are sold at R2.5 per unit. On 31 March 2021, Adiwele Ltd had 100 500 units of compact discs in stock. To sell this products Adiwele Ltd will incur the following costs: Sales commission of 20 cents per unit, Additional designing costs of 25 cents per unit, Advertising and packaging costs of 23 cents per unit, Salaries for administrative staff of R6 000 per month. Adiwele Ltd measures inventory at lower of cost and net realisable value as per IAS 2, Inventories according to IFRS at year end. What is the value of the closing inventory on 31 March 2021 as per IAS 2? 1.251 250 2. 201 000 3. 208 035 4. 136 035 5. 244 215
ABC Ltd is marketing a ‘surfing bundle’ in which, for $3200, it provides customers with a surfboard (which retails separately for $2550), a wetsuit (which retails separately for $750) and five lessons (which retail separately for $600). Whether separate performance obligations exist, and to explain why you made this judgement. How much of the transaction price to allocate to each performance obligation?
Show the solution in good accounting form
Boulevard Company expects to sell 500,000 units in 2021 at P100 per unit. Variable manufacturing costs in producing the product amount to P40 per unit and fixed manufacturing costs amount to P25.00 per unit. A special order from Devil Company of 50,000 units were made at an offered price of P57.50 per unit. Regular sales from customers will not be affected from this transaction. However, in order to meet the specifications and requirements of Boulevard Company, overtime pay would be incurred amounting to P7.50 per unit. Determine the effect in income when the special order is accepted. Indicate whether increase or decrease 1. 500,000 increase 2. 750,000 decrease 3. 875,000 increase 4. None of the above Group of answer choices 1 2 3 4