Entries for Waterway25-Apr-20 inventory on consignment?inventory30-Jun-20 cash???(to record revenue from consignment sale)30-Jun-20 cost of good sold?inventory on consignmententries for Farm Depot25-Apr-20 ???30-Jun-20 cash?revenue from consignment sale?(to record revenue from consignment sale)30-Jun-20 Account payable?cash?~~??????? Waterway Ranch & Farm is a distributor of ranch and farm equipment. Its products include small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company Internet site. However, given someof its specialty products, select farm implement stores carry Waterway's products. Pricing and cost information on three ofWaterway's most popular products are as follows.ItemStand-Alone Selling Price (Cost)Mini-trencher$3,700($2,040)Power fence hole auger1,224($816)Grain/hay dryer14,260($11,220)Respond to the requirements related to the following independent revenue arrangements for Waterway Ranch & Farm. IFRS is aconstraint.Waterway sells three grain/hay dryers to a local farmer at a total contract price of $45,500. In addition to the dryers, Waterwayprovides installation, which has a stand-alone sales value of $775 per unit installed. The contract payment also includes a $1,395maintenance plan for the dryers for three years after installation. Waterway signs the contract on June 20, 2020, and receives a20% down payment from the farmer. The dryers are delivered and installed on October 1, 2020, and full payment is made toWaterway.Prepare the journal entries for Waterway in 2020 related to this arrangement as well as any adjusting journal entries at itsDecember year end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.Round answers to O decimal places, e.g. 5,275.)DrCr20-Jun-20 cashunearned revenue910001-Oct-20 cashunearned revenue ?sales revenueservice revenue(record sales)01-Oct-20 cost of goods soldinventory31-Dec-20 Unearned Revenue?Service revenue?On April 25, 2020, Waterway ships 110 augers to Farm Depot, a farm supply dealer in Alberta, on consignment. By June 30, 2020,Farm Depot has sold 75 of the consigned augers at the listed price of $1,224 per unit. Farm Depot notifies Waterway of the sales,retains a 10% commission, and remits the cash due to Waterway.Prepare the journal entries for Waterway and Farm Depot for the consignment arrangement. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter O for the amounts. Record journal entries in the order presented in the problem.)91003640033660??33660

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Description: Entries for Waterway25-Apr-20 inventory on consignment?inventory30-Jun-20 cash???(to record revenue from consignment sale)30-Jun-20 cost of good sold?inventory on consignmententries for Farm Depot25-Apr-20 ???30-Jun-20 cash?revenue from consignment

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Accounting

Entries for Waterway 25-Apr-20 inventory on consignment inventory 30-Jun-20 cash ? ? ? ? ? ? סיי ?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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