) On December 1, 2019, Pinewood Company sold machinery to a customer for $2,000. Pinewood regularly sells machinery. The customer c
Q: Hallmark Company began business on October 1, 2020. Following are some of the company's transactions…
A: Current liabilities means the liabilities which will be paid with in short period of time , one year…
Q: Describe the revenue recognition policy that the company should follow: Comfort Furniture sells…
A: The revenue from sale of goods should be recognised in the books when: Risk and reward of ownership…
Q: On May 1st, X Company sells a phone, a charger, and one year of services (voice, text and data) for…
A: Deferred revenue = Combined cost / Total seprate cost * Service revnue
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: term is 30 days. b. A sale invoice from Papier Paper Company dated December 15, 2024 for P5,465. The…
A: Statement of Financial Position The balance sheet is often known as a statement of financial…
Q: Dusty Johnson is the accounting and finance manager for a manufacturer. At year-end, he must…
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash with a two-year parts warranty to a…
A: Warranty Expenses is expense on repair or replacement expected during the warranty period on goods…
Q: A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies…
A: The expenses should be recorded when they actually incurred. Journal entries are used to record…
Q: Escargot Inc. is a 5-star restaurant in Cincinnati The restaurant sells 500 gift cards during…
A: In this case, Company E expects that 12% of the gift cards will not be redeemed out of the totalgift…
Q: On May 1, 2020, People's Networks sold computer networking supplies to Florida Autos for $46,300.…
A: From May 1 to Oct 31 = 6 months. So interest will be accrued for 6 months on Oct 31. From Oct 31…
Q: Johnson Co. accepts a note receivable from a customer in exchange for some damaged inventory. The…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Old Hampton Company is preparing adjusting entries at December 31. An analysis reveals the…
A: Journal Entry - It is record of every business transactions in day to day life over a particular…
Q: Sharon Els sells security systems for Guardsman Security Co. Els has a monthly sales quota of…
A: An ethical issue refers to a situation or problem that requires an entity or a person to choose…
Q: recognize revenue
A: Revenue Recognition :- revenue is considered to have been realised when a transaction has been…
Q: On January 1, 2019, Spring Fashions Inc. enters into a contract with a southeast retail company to…
A: Given that: Number of dresses in the contract = 500 dresses Price per dress = $125 per dress
Q: Skysong Cosmetics Co. purchased machinery on December 31, 2019, paying $52,900 down and agreeing to…
A: carrying value: Carrying value=$56,000*3.16987(PVIFA of 10% for 4 years)…
Q: Johnstone Controls had the following situations on December 2021. 1. On March 31, 2021, the company…
A: Adjusting journal entries - Adjusting entries are prepared by the companies after the preparation…
Q: LIhe tollowing intormation applies to the questions displayed below. On October 29, Lobo Co. began…
A: Answer are as follows
Q: Zahava Corporation sells equipment to Ari Company for $700,000. Ari does not need the equipment…
A: 1. Journal Entry In the books of Z
Q: On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty…
A: Given information is: On April 1, 2021, Shoemaker Corporation realizes that one of its main…
Q: Take me to the text Chan-Nee Enterprises sells heavy-duty lawnmower equipment. On May 11, 2020, they…
A: Warranty expense means where the customer has given an option to repair the goods if some defect…
Q: On August 1, Costco Lubbock collects sells 150,000 one-year family memberships to customers for $45.…
A: Given, Number of memberships = 150,000 Selling price of one year membership = $45
Q: Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions…
A: Notes are instrument issued by company acknowledging the debt raised by company . It is a liability…
Q: Sheffield Limited has the following information available for accruals for the year ended December…
A: A journal entry is the act of recording any transaction, whether one that is economic or not. An…
Q: Stratus Inc. purchased equipment for $18,500 and received an invoice with terms 4/10, 3/30, n/45. If…
A: Stratus Incorporation purchased equipment and it had terms 4/10, 3/30, n/45. In this case, the…
Q: [The following information applies to the questions displayed below.] Hitzu Company sold a copier…
A: Journal entries refer to the process of inspecting and formulating all the transactions of a company…
Q: The ABC Co. delivered $5,000 worth of window washing services in 2021 but only collected $4,300 in…
A: Cash basis of accounting and accrual basis of accounting are two type of accounting systems that can…
Q: Gatsby, Inc. owed $500,000 on account for inventory purchased on November 1, 2020. The company's…
A: Note payable is a financial instrument that creates a liability to a person signing it. It contains…
Q: ABC Co. owns a branch. At the end of the month, the balance of the Allowance on overvaluation is…
A: Percentage of profit on cost= Allowance on overvaluation/ Cost*100
Q: [The following information applies to the questions displayed below.] Hitzu Company sold a copier…
A: Warranty expenses are debited and are estimated as a percentage of dollar sales. The estimated…
Q: [The following information applies to the questions displayed below.] Hitzu Company sold a copier…
A: The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are…
Q: Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions…
A: When goods has been purchased on this term (2/10,net30) , it means that 2% discount will be given if…
Q: At 30 September 2020, Wall had an allowance for doubtful account of P37,000. During the year ended…
A: The numerical has covered the concept of Accounts Receivable. An allowance for doubtful debt…
Q: On February 1, 2019, the telecommunications company sold cellular phones and unlimited calls service…
A: Revenue is the amount which is realized by the firm when it sells goods to the customers or provides…
Q: How much revenue will Boogie recognize for the month of September?
A: Revenue should be recognized in the period goods are being sold. It does not matter whether cash has…
Q: On December 1, 2021 Cardinal Company, a garden retailer, purchased $20,000 of corn seed, terms 2/10,…
A: Solution In the given case ,C company has a chance to get 2 % discount if payment made with in 10…
Q: Johnstone Controls had the following situations on December 2021. On March 31, 2021, the company…
A: Journal entries are being used to record financial transactions. You create a journal entry by…
Q: During the current year, Gardner Home Center sold 800 power washers for $350 each. The power washers…
A: Warranty Liability: Estimated liability is an exact dollar amount of debt or obligation which is…
Q: The following series of transactions occurred during 2020 and 2021 when Jenna Corp. sold merchandise…
A: The journal entries keep the record for daily transactions of the business.
Q: Byrd Company had the following transactions during 2019 and 2020: 1. Prepare the…
A: A journal entry is used to record a commercial transaction in the accounting records of a…
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: Hitzu Co. sold a copier (that costs $4,800) for $6,000 cash with a two-year parts warranty to a…
A: STEP 1 Journal is the part of the book keeping
Q: 16. On 1st January, 2019, X sold goods to Y for ? 12.000 and immediately received Y 5,000 in cash…
A: A bill of exchange appears to be a collection of written instructions committing one party to pay a…
Q: Do you want to make a double entry? On November 7, 2021, a fire broke out at the store, destroying…
A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…
Q: As a buyer for the J&J company, you receive an invoice with terms 3/10, EOM, net 60. The invoice…
A: 1. 3/10 EOM means buyer can get the cash discount of 3% if he pays the amount within 10 days from…
38) On December 1, 2019, Pinewood Company sold machinery to a customer for $2,000. Pinewood regularly sells machinery. The customer could not pay at the time of sale but agreed to pay 9 months later and signed a 9-month note at 12% interest. Prepare the
39) ABC Accepted a 90 day, 8%, $50,000 Note Receivable from from a customer to replace an
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.Rix Company sells home appliances and provides installation and service for its customers. On April 1, 2019, a customer purchased a dishwasher that Rix normally sells for 1,000. In addition, the customer purchased the installation service and a 3-year service contract, with stand-alone selling prices of 200 and 400, respectively. Because the customer purchased all three items as a bundle, Rix charged the customer 1,400. Required: 1. How should the transaction price be allocated among the products? 2. Prepare the journal entries to recognize revenue related to each product in 2019.Window World extended credit to customer Nile Jenkins in the amount of $130,900 for his purchase of window treatments on April 2. Terms of the sale are 2/60, n/150. The cost of the purchase to Window World is $56,200. On September 4, Window World determined that Nile Jenkinss account was uncollectible and wrote off the debt. On December 3, Mr. Jenkins unexpectedly paid in full on his account. Record each Window World transaction with Nile Jenkins. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Window World rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, however, that in most cases the direct write-off method is not allowed.
- 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. 1,345,000Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 6,000 treats at $1 per treat. Terms of the purchase are 2/10, n/30. Barkers pays half the amount due in cash on February 28 but cannot pay the remaining balance due in four days. The supplier renegotiates the terms on March 4 and allows Barkers to convert its purchase payment into a short-term note, with an annual interest rate of 6%, payable in 9 months. Show the entries for the initial purchase, the partial payment, and the conversion.Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.
- Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)On January 5, 2019, ShoeKing Corp. sells for cash 500 pairs of volleyball shoes to FootAction, a shoe retailer, for 70 each. FootAction has the right to return the shoes for any reason up to March 31, 2019, for a full refund. The cost of each pair of shoes is 32. ShoeKing predicts that it is probable that 40 pairs of the shoes will be returned. ShoeKing uses the perpetual method for inventory. Required: 1. Prepare ShoeKings journal entry on January 5, 2019, to account for this transaction. 2. Assume that FootAction returns 35 pairs of shoes on March 31, 2019. Prepare the journal entry to record this return.Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year. A. On July 3, the company purchases thirty fountains for $1,200 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3. B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 8% annual interest rate, payable in two months from August 3. C. On October 3, Serene Company pays its account in full. Record the journal entries to recognize the initial purchase, the conversion, and the payment.
- Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.Laminate Express extended credit to customer Amal Sunderland in the amount of $244,650 for his January 4 purchase of flooring. Terms of the sale are 2/30, n/120. The cost of the purchase to Laminate Express is $88,440. On April 5, Laminate Express determined that Amal Sunderlands account was uncollectible and wrote off the debt. On June 22, Amal Sunderland unexpectedly paid 30% of the total amount due in cash on his account. Record each Laminate Express transaction with Amal Sunderland. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Laminate Express rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, though, that in most cases the direct write-off method is not allowed.If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?
