You work as an accountant for Pink Pony. Pink Pony had numerous active contracts at the beginning of the current year (2022). All of these contracts have been analyzed correctly. Pink Pony had been paid in full for all of these contracts as of the beginning of the current year (2022) (i.e., they were paid before January 1 of the current year (2022). The table included in the “Contracts from Prior Years” shows an analysis of all contracts for “Current Year” which is 2022, and “future years” which is 2023. For the sake of simplicity, we will assume that there are no significant financing components associated with this revenue. The FIFO measurement of inventory shipped this year (2022) from revenue contracts completed in 2021, before the current year (2022) is $476,300. Of this amount $34,755 is still in transit as of December 31, 2022. The sales price of these goods is $64,300. Please make all the appropriate journal entries and adjusting journal entries for Pink Pony for the information above.
You work as an accountant for Pink Pony. Pink Pony had numerous active contracts at the beginning of the current year (2022). All of these contracts have been analyzed correctly. Pink Pony had been paid in full for all of these contracts as of the beginning of the current year (2022) (i.e., they were paid before January 1 of the current year (2022). The table included in the “Contracts from Prior Years” shows an analysis of all contracts for “Current Year” which is 2022, and “future years” which is 2023. For the sake of simplicity, we will assume that there are no significant financing components associated with this revenue. The FIFO measurement of inventory shipped this year (2022) from revenue contracts completed in 2021, before the current year (2022) is $476,300. Of this amount $34,755 is still in transit as of December 31, 2022. The sales price of these goods is $64,300. Please make all the appropriate journal entries and adjusting journal entries for Pink Pony for the information above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
You work as an accountant for Pink Pony.
Pink Pony had numerous active contracts at the beginning of the current year (2022).
All of these contracts have been analyzed correctly.
Pink Pony had been paid in full for all of these contracts as of the beginning of the current year (2022) (i.e., they were paid before January 1 of the current year (2022).
The table included in the “Contracts from Prior Years” shows an analysis of all contracts for “Current Year” which is 2022, and “future years” which is 2023.
For the sake of simplicity, we will assume that there are no significant financing components associated with this revenue.
The FIFO measurement of inventory shipped this year (2022) from revenue contracts completed in 2021, before the current year (2022) is $476,300.
Of this amount $34,755 is still in transit as of December 31, 2022.
The sales price of these goods is $64,300.
Please make all the appropriate journal entries and adjusting journal entries for Pink Pony for the information above.
Transcribed Image Text:Contracts Initiated in Prior Years
Contract
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
Current Year
Goods Shipped
in the Current
Year*
112,000.00
93,444.00
425,700.00
39,622.00
14,600.00
22,905.00
708,271.00
Maintenance
Contracts Fulfilled in
the Current Year
12,600.00
17,429.00
119,377.00
13,900.00
65,000.00
36,200.00
5,810.00
58,406.00
11,488.00
1,963.00
41,970.00
16,999.00
4,152.00
405,294.00
Future Years
Goods not yet Shipped
as of the end of the
Current Year
25,900.00
124,785.00
150,685.00
*As of December 31 of the current year $64,300 of goods shipped are still in transit.
Maintenance not yet
Fulfilled as of the end
of the Current Year
65,100.00
24,700.00
258,960.00
31,955.00
34,527.00
22,966.00
5,130.00
9,761.00
453,099.00
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education