2021: * SPC provides monthly services beginning October 1, 2021 for $2,000 per month. You can assume these services are provided (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. Stop sharing Hide Dec 31, 2021 21
Q: On July 1, 2022, Sheridan Company pays $18,500 to Wildhorse Co. for a 2-year insurance contract.…
A: Journal Entry: Date General Journal Debit Credit Jul. 1 Cash $18,500…
Q: A service provider has a 12-month agreement to provide a customer with services for which the custom…
A: Ex post facto: It is a legal term that means that something is being made binding retroactively in a…
Q: On December, 2021 the company borrows $20,000 from Mega Bank Ltd. at 6% per annum to buy a delivery…
A: In accounting adjusting entry refers to that journal entry that are recorded at the end of the…
Q: On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 200,000, over the…
A: Revenue Recognition - As the relevant rules of the GAAP revenue should be recognized when the…
Q: 6. On October 1, 2020, Perfect Support, Inc. receives $3,000,000 cash from a large corporate client.…
A: Revenue Recognition principle states that revenues should recognized in the books of accounts only…
Q: The following transaction relate to Tool Company’s contingencies. The financial statements are dated…
A: INTRODUCTION; Liabilities are the debts owed by your business to third parties. They represent the…
Q: On January 1, 2021, Hodge Beanery received $8,000 from the Kennedy Company in exchange for a coffee…
A: Meaning of Deferred Revenue Deferred Revenue refer as the advance revenue which the company will…
Q: The following information is available for the year-ended December 31, 2022 for Sport Court…
A: Sport Court Resurfacing (SCR) Corporation For the Year Ended Dec 31, 2022 Journal Entry Date…
Q: na Corporation must determine the December 31, 2020 year-end accruals for advertising and rent…
A: Luna Corporation must determine the December 31, 2020 year-end accruals for advertising and rent…
Q: An entity sells car's spare parts to ZZZ Car Repair during 2020. The entity offers rebates of 3% on…
A: As per the given condition, if the overall purchase of the year exceeds $ 120000 then rebate will be…
Q: On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 200,000, over the…
A: Total amount paid on August 31, 2020 = Total amount of services x 35% = RO 200000 x 35% = RO 70000
Q: 1. On January 1, 2020, Sheffield signed an agreement to operate as a franchisee of Hsian Copy…
A:
Q: Royce Company sells magazine subscriptions of one to three year periods. Cash receipts from…
A: The balance of unearned subscription revenue on December 31, 2020 before adjustment was P 2,400,000.…
Q: On July 1, 2021, a company loans one of its employees $23,000 and accepts a ten-month, 8% note…
A: Revenue is the amount that a company earns from normal activities conducted by the business for…
Q: On January 1, 2021, Tina Bank extended a 5-year, 12%, P5,000,000 loan to Mr. Prospecio. Principal is…
A: Business loans- A business loan, also known as a commercial loan, is a type of financing used to…
Q: On August 1, 2024, Trico Technologies, an aeronautic electronics company, borrows $20.1 million cash…
A: The accrued interest is current liability for the business as interest is accrued for payment but…
Q: On January 2, 2020, a public company sells machinery for $620,000. The in-store list price on the…
A: Notes receivable = Sale price of machinery - cash received = 620000 - 104000 = $516,000
Q: On April 30, 2019 the Triple Safety Agency received an advance payment of P540,000 for a one-year…
A: Service income should be recognized as revenue when it is earned. Any advance received against which…
Q: 12) MNO Company operates a retail store and must determine the proper December 31, 2020, year-end…
A: Accrued liabilities refer to the amount which is payable to the outsiders within the next operating…
Q: The pre-closing trial balance of DENR-CAR shows the following balances of accounts: Subsidy from…
A: Introduction: The surplus is the difference between income and expenditure. The income and…
Q: Umasa Company reported rental revenue of P2,210,000 in the cash basis income tax return for the year…
A: Under Cash basis of accounting revenue is recorded when the actual cash received, the major drawback…
Q: On December 1, 2021, Davenport Company sold merchandise to a customer for $20,000. In payment for…
A: Interest revenue recognize during 2021 = Notes receivable x rate of interest x 1/12 months =…
Q: On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the…
A: Please find below all the journal entries -
Q: X Company sold equipment on January 1, 2021 valued at $300,000 in exchange for a Note Receivable of…
A: Discount on Note receivable = Face value of notes receivable - Equipment value = $330000 - $300000 =…
Q: Cardinal Company, a dealer in lawn equipment, accepted a 6 month note receivable from a customer on…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
Q: 2.Hawks Company started selling subscriptions to a semi-annual magazine that is delivered to…
A: Subscription is the amount you pay yearly, It is basically an agreement you make in advance that if…
Q: The pre-closing trial balance of DENR-CAR shows the following balances of accounts: Subsidy from…
A: Excess of Income Over Expenses for the year ended December 31, 2020 = Total revenue - total expenses
Q: On December 1, 2018, Davenport Company sold merchandise to a customer for $20,000. In payment for…
A: Compute the interest income for 2018.
Q: On November 1, 2021, Taylor signed a one-year contract to provide handyman services on an as-needed…
A: Note: Taylor should recognize revenue in 2021 for 2 months of the contract because no certainty…
Q: On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $20.5 million cash…
A: Promissory Note: A promissory note is a legal and financial tool that contains a written promise…
Q: Capricorn Company must determine the December 31, 2019 year-end accruals for advertising and rent…
A: Accrued rent from December 16 to December 31 = Monthly rent x 15/30 days = 4800 x 15/30 = P2400
Q: On July 1, 2021, Guarin Co. obtained fire insurance for a three-year period at an annual premium of…
A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…
Q: Jung Sa Ha Company must determine the December 31, 2020 year-end accruals for advertising and rent…
A: Expenses which have been incurred in the accounting period but not paid till the end of the…
Q: THIRTYFIRST Company must determine the December 31, 2021 year end accruals for advertising and rent…
A: The accrued liabilities are the amount due to be paid within one year.
Q: On January 1, 2021, Wooten Technology Associates sold computer equipment to the Denison Company.…
A:
Q: The Trial Balance of Deco Enterprise as at 31 December 2019 shows the following: RM RM Incentive…
A:
Q: On October 10, 2020, Executor Co. entered into a contract with Belisle Inc. to transfer Executor's…
A: Journal entries are the transactions that are recorded in the primary book. They are chronological…
Q: On June 1, 2021, Demer Consulting provides services to a customer for $150,000. To pay for the…
A: The journal entries are prepared to record the day to day transactions of the business during the…
Q: . Midwest Enterprises made the following entry on December 31, 2020. Interest Expense 10,000…
A: Entry would be recorded by Anaheim National bank.
Q: UA Company must determine the December 31, 2019 year-end accruals for advertising and rent expenses.…
A: Solution: Accrued liabilities related to advertising expense = P1,500 Accrued liabilities related to…
Q: Pythagoras Company must determine the December 31, 2021 year-end accruals for advertising and rent…
A: solution : calculation of accrued liability as on december 31 2021 Advertisement expenses…
Q: On October 1, 2019, a company acquired land by issuing a two-year note, 12%, P4,000,000 note…
A: Interest expense = Face value of notes x rate of interest x no. of months / 12
Q: A Franchisor entered into a franchise agreement with B, franchisee, on March 31, 2021. The total…
A: A franchise is an agreement in which the owner of the asset (an asset can be the intangible asset or…
Q: ABD Company pays a weekly payroll of $285,000 that includes federal taxes withheld of $38,100, FICA…
A: Payroll Payable: It is the net amount of compensation paid to the employees on the agreed date.…
Q: On August 31, 2022, Nova Corporation signed a four-year contract to provide services for Minefield…
A: Under the accounting, the accrual basis is the one where the revenues are recognized or recorded…
Q: On September 1, 2021, Zara Company issued a 6-month note to supplier amounting to P300,000, 12%…
A: Adjusting entries are those journal entries which are passed at the end of accounting period for the…
Q: on 1/8/2019 "ABC" Company sold a truck to "CDC" Company for $145,000. The buyer ("CDC" Company) paid…
A: Interest revenue is the income which is generated from investments. The firms who charge interest on…
Q: Entity A provides bookkeeping services to Entity B for a monthly retainer fee (fixed monthly fee) of…
A: Advance receipt of fees is unearned revenue at the time of receipt it needs to be adjusted at the…
Q: On May 1, 2021,Varga Tech Services signed a $6,000 consulting contract with Shaffer Holdings. The…
A: For recognizing the revenues, revenues must have accrued to the business. In the given situation,…
Q: On December 1, 2021, Davenport Company sold merchandise to a customer for $20,000. In payment for…
A: Sometimes at the time of making sales on credit, the customer offer credit period more than normal…
Step by step
Solved in 3 steps
- 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.On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial services. The contract sets the price at 12,000 per year, which is the normal standalone price that Mopps charges. On December 31, 2020, Mopps and Conklin agree to modify the contract. Mopps reduces the fee for the third year to 10,000, and Conklin agrees to a 4-year extension that will extend services through December 31, 2024, at a price of 15,000 per year. At the time that the contract is modified, Mopps is charging other customers 13,500 for the cleaning and janitorial service. Required: Should Mopps and Conklin treat the modification as a separate contract? If so how should Mopps account for the contract modification on December 31, 2020? Support your opinion by discussing the application to this case of the factors that need to be considered for determining the accounting for contract modifications.On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?
- 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.Enterprise Solutions Inc. licenses its productivity software to Blackmon Company for 100,000, payable at contract inception. Enterprise agrees to provide semiannual software upgrades over the 5-year length of the contract to enable Blackmon to benefit from any technological advancement. Enterprise concludes that the software license is not distinct from the promised upgrades. What journal entries are necessary for Enterprise to account for this transaction?Velocity, a publicly traded corporation with a calendar fiscal year, entered into an agreement with Wedding Planners, Inc. a wedding event planning company on February 14, 2022. The contract specifies that the services will begin on March 1, 2022. Velocity will design a marketing strategy to increase “hits” on Wedding Planners website by 40%. The contract will last for 3 months (though May 31, 2022). Wedding Planners promises to pay $25,000 at the beginning of each month for Velocity’s services with the first payment on March 1, 2022. At the end of the contract, Velocity will be entitled to an additional $15,000 bonus, depending on whether traffic on Wedding Planners’ website has increased by the desired 40%. At the inception of the contract, Velocity estimated there is an 85% chance that they will earn the $15,000 bonus and 15% likelihood they will not. These probabilities are based on past experience with similar projects and the company has significant experience in these…
- Velocity, a publicly traded corporation with a calendar fiscal year, entered into an agreement with Wedding Planners, Inc. an wedding event planning company on September 15, 2021. The contract specifies that the services will begin on October 1, 2021. Velocity will design a marketing strategy to increase “hits” on Wedding Planners website by 40%. The contract will last for 3 months (though December 31, 2021). Wedding Planners promises to pay $25,000 at the beginning of each month for Velocity’s services with the first payment on October 1, 2021. At the end of the contract, Velocity will be entitled to an additional $10,000 bonus, depending on whether traffic on Wedding Planners’ website has increased by the desired 40%. At the inception of the contract, Velocity estimated there is a 80% chance that they will earn the $10,000 bonus and 20% likelihood they will not. These probabilities are based on past experience with similar projects and the company has significant…Please list all of the journal entries for 2022 the OHIO Contract. Your company name is PP. See below information: Ohio Contract On September 7th of the current year (2022), PP signed a contract with Ohio Contract, a large city in the northeast. PP will provide Ohio with 2,470 scooters for $855 each. Each of the scooters is included in a service agreement, whereby PP will provide all maintenance on the scooters for 3 years. In addition, it will provide labor at no charge for these repairs. At the time of the repair, PP will bill Ohio for the parts needed to accomplish the repair. Ohio paid WTG on September 7th of the current year. PP will deliver 665 scooters on October 1 of the current year, 875 scooters on January 1 of next year, and 930 scooters on April 1 of the next year. Because of the size of Ohio, and its potential to buy many more scooters, PP offers them a volume discount, based on how many scooters they purchase between September 7th of the current year and December 31st of…In July 2020, Sykick Software Company licenses its accounting software to RayHawk Corporation at a cost of $30,000 for two years and also enters into a contract to install the software for an additional $3,000. Trident sells the software license with or without installation. The accounting software is not modified or customized by the customer. Required: Prepare journal entry for Sykick to record this transaction assuming that installation will occur in July 2020 when RayHawk pays Sykick $33,000 per their agreement.