This lesson is under non-financial liabilities. 2. VULTURE Company requires refundable advance payments with special orders formachinery constructed to customer's specifications. Information for 2021 is as follows:P 885,0001,380,000Customer advances – balance, December 31, 2020Advances received with orders in 2021Advances applied to orders shipped in 2021Advances applicable to orders cancelled in 20211,230,000375,000What amount should VULTURE Company report as current liability for customer'sdeposits in December 31, 2021 statement of financial position?

Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…

Answered: 2. VULTURE Company requires refundable…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 22CE: Service Revenue Softball Magazine Company received advance payments of $75,000 from customers during...

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The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
Interest-Bearing and Non-Interest-Bearing Notes On December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a 12,000,60-day note. Required: Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customers repayment on February 9, 2020, assuming: 1. Interest of 12% was in addition to the face value of the note. 2. The note was issued as a 12,000 non-interest-bearing note with a present value of 11,765. The implicit interest rate on the note receivable was 12%. Assume a 360-day year. (Round to the nearest dollar.)
Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for 8,500. Prepare the journal entry for McKinncy to record the collection of the account previously written off.
Service Revenue Softball Magazine Company received advance payments of $75,000 from customers during 2019. At December 31, 2019, $20,000 of the advance payments still had not been earned. Required: After the adjustments are recorded and posted at December 31, 2019, calculate what the balances will be in the Unearned Magazine Revenue and Magazine Revenue accounts. Use the following information for Cornerstone Exercises 5-23 and 5-24: Bolton sold a customer service contract with a price of S37 000 to Sammys Wholesale Company. Bolton offered terms of 1/10, n/30 and expects Sammy to pay within the discount period.
Crazy Company requires advance payments with special orders for machinery constructed to customers specifications. The advances are non-refundable. Information for the current year is as follows: Advances from customers – 01/01/2021 - P1,180,000 Advances received with orders - P1,840,000 Advances applied to orders shipped - P1,640,000 Advances applicable to orders cancelled - P500,000 How much is the Advances from Customers at December 31, 2021?
Tokwa Inc. requires advance payments with special orders for machinery constructed to the customer specifications. Information are as follows: • Customer Advances - Balance December 31, 2020- P118,000 • Advances received with orders in 2020- P184,000 • Advances applied to orders shipped in 2020- P164,000 • Advances applicable to orders canceled in 2020- P50,000 How much should be reported as a current liability for advances from customers on December 31, 2019?
5. AVZ Company requires refundable advance payments with special orders for machinery constructed to the customer’s specifications. Information for 2023 is as follows: Customer advances-balance, December 31,2022 P 885,00 Advances received with orders in 2023 1,380,00 Advances applied with orders shipped in 2023 1,230,00 Advances applicable to orders canceled in 2023 375,000 What amount should AVZ Company report as a current liability for customer’s deposits in its December 31, 2023 balance sheet if AVZ’s policy is to return the deposit if the customer notifies AVZ about the cancellation?
. TITO Co. requires advance payments with special orders for an equipment constructed to customer specifications. These advances are nonrefundable. Information for2020 is as follows: Customer advances-balance 1/1/20x0 P124,000 Advances received with orders in 20x0 300,000 Advances applied to orders shipped in 20x0 50,000 Advances applicable to orders canceled in 20x0 30,000 In Tito's December 31, 2020, balance sheet, what amount should be reported as a current liability for advances from customer? a. 0 b. 88,000 c. 74,000 d. 148,000
M Corp. receives advance payments with special orders for containers constructed to customer specifications. Related information for 2022 is as follows ($ in millions): Customer advances balance, Dec. 31, 2021 $ 100 Advances received with 2022 orders 204 Advances applicable to orders shipped in 2022 189 Advances from orders canceled in 2022 53 What amount should M Corp. report as a current liability for advances from customers in its December 31, 2022, balance sheet? Multiple Choice $62 million. $0. $304 million. $115 million.
Farina Company requires advance payments with special orders for machinery constructed to customer specifications. These advances are nonrefundable Data for the year are: Customer advances 6,800,000 Advances received with orders in 2021 9,000,000 Advances applied to orders shipped in 2021 8,700,000 Advances applicable to orders canceled in 2021 2,600,000 The December 31, 2021 balance sheet should report current liability for advances at? A.) 4,500,000 B.) 4,400,000 C.) 7,100,000 D.) 6,400,000
Love Company requires advance payments with special orders for machinery constructed to customer specifications.These advances are nonrefundable. Information for the current year is:Advances from customers – January 1 P1,320,000Advances received with orders 2,160,000Advances applied to orders shipped 1,920,000Advances applicable to orders cancelled 120,000In Love Company’s December 31 statement of financial position, what amount should be reported as current liability foradvances from customers?a. P1,440,000 b. P1,560,000 c. P1,680,000 d. P0
The following information relates to HAVE MERCY Company’s obligations as of December 31, 2019. For each of the numbered items, determine the amount if any, that should be reported as current liability in HAVE MERCY’s December 31, 2019 balance sheet.1. TRADE AND OTHER PAYABLESAccounts payable per general ledger control amounted to P2,720,000, net of P120,000 debit balances in suppliers’ accounts. The unpaid voucher file included the following items that not had been recorded as of December 31, 2019:a) Joli’s General Merchandising Company – P112,000 merchandise shipped on December 31, 2019, FOB Buyer; received on January 10, 2020.b) Matthias Suppliers, Inc. – P96,000 merchandise shipped on December 26, 2019, FOB Supplier; received on January 16, 2020.c) Tang Super Lines Services, Inc. – P72,000 janitorial services for the three-month period ending January 31, 2020.d) Meralco – P33,600 electric bill covering the period December 16, 2019 to January 15, 2020.On December 28, 2019, a supplier…

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