Transaction price: Transaction price refers to the price that is paid at the time of delivery or after delivery of goods and/or services. Specific situations affecting the transaction price are as follows: Variable amount of consideration and the restriction on its recognition. Rights for sales return Whether the seller is acting as a principle or an agent Time value of money Payments by the seller to the customer Variable consideration: Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events. Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Debit , all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities. Credit , all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses. To prepare: The journal entry to record F’s sale on June 1, 2018.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 5.12E

Requirement – 1

To determine

Transaction price:

Transaction price refers to the price that is paid at the time of delivery or after delivery of goods and/or services. Specific situations affecting the transaction price are as follows:

Variable amount of consideration and the restriction on its recognition.

Rights for sales return

Whether the seller is acting as a principle or an agent

Time value of money

Payments by the seller to the customer

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry to record F’s sale on June 1, 2018.

Requirement – 2

To determine

To prepare: The journal entry to record F’s purchase of advertising services from W on June 15, 2018.

Requirement – 3

To determine

To prepare: The journal entry to record the cash received from W on June 30, 2018

Requirement – 4

To determine

To discuss: The effect of recognized revenue when it is uncollectible accounts.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Repsola is a drilling company that operates an offshore Oilfield in Feeland. Five yearsago, Feeland had a major oil discovery and granted licenses to drill oil to reputable,experienced drilling companies. The licensing agreement requires the company toremove the oil rig at the end of production and restore the seabed. Ninety percent ofthe eventual costs of undertaking the work relate to the removal of the oil rig andrestoration of damage caused by building it and ten percent arise through theextraction of the oil. At the Statement of Financial Position (SOFP) date (December 312025), the rig has been constructed but no oil has been extractedOn January 1st 2023, Repsola obtained the license to construct an oil rig at a cost of$500 million. Two years later the oil rig was completed. The rig is expected to beremoved in 20 years from the date of acquisition. The estimated eventual cost is 100million. The company’s cost of capital is 10% and its year end is December 31st. Repsolauses…

Maharaj Garage & Car Supplies sells a variety of automobile cleaning gadgets including a variety of hand vacuums. The business began the first quarter (January to March) of 2024 with 20 (Mash up Dirt) deep clean, cordless vacuums at a total cost of $126,800. During the quarter, the business completed the following transactions relating to the "Mash up Dirt" brand. January 8 January 31 February 4 February 10 February 28 March 4 March 10 March 31 March 31 105 vacuums were purchased at a cost of $6,022 each. In addition, the business paid a freight charge of $518 cash on each vacuum to have the inventory shipped from the point of purchase to their warehouse. The sales for January were 85 vacuums which yielded total sales revenue of $768,400. (25 of these units were sold on account to Mandys Cleaning Supplies, a longstanding customer) A new batch of 65 vacuums was purchased at a total cost of $449,800 8 of the vacuums purchased on February 4 were returned to the supplier, as they were…

Tutor give me ans

Answer 2

Question

Chapter 5, Problem 5.12E

Requirement – 1

To determine

Transaction price:

Transaction price refers to the price that is paid at the time of delivery or after delivery of goods and/or services. Specific situations affecting the transaction price are as follows:

Variable amount of consideration and the restriction on its recognition.

Rights for sales return

Whether the seller is acting as a principle or an agent

Time value of money

Payments by the seller to the customer

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry to record F’s sale on June 1, 2018.

Requirement – 2

To determine

To prepare: The journal entry to record F’s purchase of advertising services from W on June 15, 2018.

Requirement – 3

To determine

To prepare: The journal entry to record the cash received from W on June 30, 2018

Requirement – 4

To determine

To discuss: The effect of recognized revenue when it is uncollectible accounts.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 5.12E

Requirement – 1

To determine

Transaction price:

Transaction price refers to the price that is paid at the time of delivery or after delivery of goods and/or services. Specific situations affecting the transaction price are as follows:

Variable amount of consideration and the restriction on its recognition.

Rights for sales return

Whether the seller is acting as a principle or an agent

Time value of money

Payments by the seller to the customer

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry to record F’s sale on June 1, 2018.

Requirement – 2

To determine

To prepare: The journal entry to record F’s purchase of advertising services from W on June 15, 2018.

Requirement – 3

To determine

To prepare: The journal entry to record the cash received from W on June 30, 2018

Requirement – 4

To determine

To discuss: The effect of recognized revenue when it is uncollectible accounts.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5, Problem 5.12E

Requirement – 1

To determine

Transaction price:

Transaction price refers to the price that is paid at the time of delivery or after delivery of goods and/or services. Specific situations affecting the transaction price are as follows:

Variable amount of consideration and the restriction on its recognition.

Rights for sales return

Whether the seller is acting as a principle or an agent

Time value of money

Payments by the seller to the customer

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry to record F’s sale on June 1, 2018.

Requirement – 2

To determine

To prepare: The journal entry to record F’s purchase of advertising services from W on June 15, 2018.

Requirement – 3

To determine

To prepare: The journal entry to record the cash received from W on June 30, 2018

Requirement – 4

To determine

To discuss: The effect of recognized revenue when it is uncollectible accounts.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 5, Problem 5.12E

Requirement – 1

To determine

Transaction price:

Transaction price refers to the price that is paid at the time of delivery or after delivery of goods and/or services. Specific situations affecting the transaction price are as follows:

Variable amount of consideration and the restriction on its recognition.

Rights for sales return

Whether the seller is acting as a principle or an agent

Time value of money

Payments by the seller to the customer

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry to record F’s sale on June 1, 2018.

Requirement – 2

To determine

To prepare: The journal entry to record F’s purchase of advertising services from W on June 15, 2018.

Requirement – 3

To determine

To prepare: The journal entry to record the cash received from W on June 30, 2018

Requirement – 4

To determine

To discuss: The effect of recognized revenue when it is uncollectible accounts.

Answer 6

Chapter 5, Problem 5.12E

Requirement – 1

To determine

Transaction price:

Transaction price refers to the price that is paid at the time of delivery or after delivery of goods and/or services. Specific situations affecting the transaction price are as follows:

Variable amount of consideration and the restriction on its recognition.

Rights for sales return

Whether the seller is acting as a principle or an agent

Time value of money

Payments by the seller to the customer

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry to record F’s sale on June 1, 2018.

Answer 7

Chapter 5, Problem 5.12E

Requirement – 1

To determine

Transaction price:

Transaction price refers to the price that is paid at the time of delivery or after delivery of goods and/or services. Specific situations affecting the transaction price are as follows:

Variable amount of consideration and the restriction on its recognition.

Rights for sales return

Whether the seller is acting as a principle or an agent

Time value of money

Payments by the seller to the customer

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry to record F’s sale on June 1, 2018.

Answer 8

Requirement – 2

To determine

To prepare: The journal entry to record F’s purchase of advertising services from W on June 15, 2018.

Answer 9

Requirement – 2

To determine

To prepare: The journal entry to record F’s purchase of advertising services from W on June 15, 2018.

Answer 10

Requirement – 3

To determine

To prepare: The journal entry to record the cash received from W on June 30, 2018

Answer 11

Requirement – 3

To determine

To prepare: The journal entry to record the cash received from W on June 30, 2018

Answer 12

Requirement – 4

To determine

To discuss: The effect of recognized revenue when it is uncollectible accounts.

Answer 13

Requirement – 4

To determine

To discuss: The effect of recognized revenue when it is uncollectible accounts.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 5 - What are the five key steps a company follows to...Ch. 5 - What indicators suggest that a performance...Ch. 5 - What criteria determine whether a company can...Ch. 5 - We recognize service revenue either at one point...Ch. 5 - What characteristics make a good or service a...Ch. 5 - Prob. 5.6Q Ch. 5 - What must a contract include for the contract to...Ch. 5 - How might the definition of probable affect...Ch. 5 - When a contract includes an option to buy...Ch. 5 - Prob. 5.10Q

Solution Summary: The author explains the rules of debiting and crediting different accounts while they occur in business transactions.

Concept explainers

To prepare: The journal entry to record F’s purchase of advertising services from W on June 15, 2018.

To prepare: The journal entry to record the cash received from W on June 30, 2018

To discuss: The effect of recognized revenue when it is uncollectible accounts.

Want to see the full answer?

Chapter 5 Solutions