prepare journal entries
Q: f the reporting period is 31 December. REQUIRED: According to relevant accounting standards,…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
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A: Branch accounting is a book keeping system in which separate accounts are kept for each…
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A: Revenue is the amount that a company earns from normal activities conducted by the business for…
Q: Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to…
A:
Q: The Sohar Port Corporation purchased 100 Photocopier machines from a German supplier at the unit…
A: The Sohar Port Corporation prepares its financial statements in OMR This entity is based in the…
Q: Entity A is a manufacturer of consumer goods. On 1 January 2020, Entity A entered into a one-year…
A: note: The answer has been prepared with the assumption that the amounts are not received and only…
Q: Lankford Corporation operates a retail computer store. To improve delivery services to customers,…
A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is,…
Q: Epsilon is an entity which prepares financial statements, in accordance with International Financial…
A: Purchase of machine: The cost of purchasing the machine from the foreign supplier (20 million…
Q: Raj Ltd.is a new company that was established on 1st January, 2020 to oversee the production of…
A: SOLUTION- Equity shares are the shares which represent the ownership of the shareholders in the…
Q: Eximco Corporation (based in Champaign, Illinois) has a number of transactions with companies in the…
A: a.
Q: Baker Company sold consumer products that are packaged in boxes. The entity offered an unbreakable…
A: Formula: Estimated redemption units = Sales units x redemption percentage Multiplying sales units…
Q: Flint Inc. was incorporated in 2019 to operate as a computer software service firm, with an…
A: A rental lease refers to a lease whereby the tenant pays a specific measure of lease in return for…
Q: Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each…
A: The given cases are about to decide whether these are contingent gains or contingent losses and…
Q: William Company operates a customer loyalty program. T entity grants loyalty points for goods…
A: Revenue in another terms is an income.Revenue is generated is through business through profits.
Q: IBM Corp. is a public company that manufactures and sells computer equipmen provides support…
A: 1) Question Analysis Step 1: Is there a contract? Yes, each party has an agreement to enter a…
Q: Halwings Group Ltd, a company operating in Kenya has the following information as at 1st December…
A: Tax is a kind of income the government generates through collecting some part of income from…
Q: The following transactions involving intangible assets of Oriole Corporation occurred on or near…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: clista Inc., a bicycle manufacturer, is preparing its financial statements for December 31, 2020.…
A: The following transaction is journalized for Ciclista bicycle manufacturer.
Q: Raj Ltd.is a new company that was established on 1st January, 2020 to oversee the production of…
A: SOLUTION- Equity shares are the shares which represent the ownership of the shareholders in the…
Q: DePaul Corporation has acquired 600 machines in a business combination. DePaul does not intend to…
A: Here discuss about the details of the determination of the fair value using the different market…
Q: Sky Co., organized in 2020, provided you with the following information. 1. Purchased a license for…
A: a. Prepare the journal entries to record all the entries related to the patent during 2021.
Q: At the end of the year the Investment in Bacolod account of the home office is P300,500. However,…
A: Branch accounting is a type of bookkeeping where distinct accounts are maintained for each branch or…
Q: On June 1, 2017, Mills Company sells $200,000 of shelving units to a local retailer, ShopBarb, which…
A: Recognition of revenue in a bill and hold arrangement depends on the circumstances. Mills determines…
Q: Damian is an entity which prepares financial statements, in accordance with International Financial…
A: Calculation of Cost / Book Value of Machine to be shown in books: Particulars Amount (£) Cost…
Q: On Jan 1, 2021, an entity grants a franchisee the right to operate a restaurant using its trade name…
A: Franchise business is letting other entities to use the brand image of the entity. For this, the…
Q: Ejura Ltd (Ejura) is a Manufacturing and retail company which prepares financial statements in…
A: Given, Stand alone price of product = 5 million Stand alone price of 2-year maintenance contract =…
Q: On 1 January 2018, LFC Bhd acquired a fast food franchise for RM300,000. The legal life of the…
A: Journal entry on 31st december 2018 Particulars Debit Credit Franchise asset A/C Dr 300000…
Q: Epsilon is an entity which prepares financial statements, in accordance with International Financial…
A:
Q: Issue C CONVEX Ltd. is planning to sell 30% of their shares to another company who wants to support…
A: Introduction: Equity shares are the shares which represent the ownership of the shareholders in the…
Q: Ariana Bhd is a pharmaceutical distributor which purchases prescription medicines and other medical…
A: Fixed Asset -Capitalization: Fixed assets should be recorded at cost of acquisition .All…
Q: The following transactions involving intangible assets of Oriole Corporation occurred on or near…
A: working notes 1. $180800/4 = $45200 2. $249,900/10 = $24900
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A: The first stage in sales recognition is identifying the contract that exists with the customer. Is…
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A: VAT (Value Added Tax) reflects the tax rate applied to goods and services. The standard rate of VAT…
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A: As per MFRS, 110: Events After the Reporting Period are those events that occur between the…
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A: Journal entry shows the recording of transactions during an accounting year and every transaction…
Q: a) Epsilon is an entity which prepares financial statements, in accordance with International…
A: Property Plant and Equipment (PPE) are the assets of the company classified as non-current assets,…
Q: KK Limited owns a property that is used as its head office in Pretoria. On 1 st January 2020, its…
A: A compilation of summaries of an organization's financial results, financial position, and cash…
Q: ABC Juice Limited manufactures and sells juice locally in St. Lucia and in the Caribbean. The…
A: The computation of VAT Payable/Refundable is shown below: Sales VAT Computation VAT Amount…
Q: Dowell Fishing Supply, Inc., sold $50,000 of Dowell Rods on December 15, 2021, to Bassadrome.…
A: Bill and hold sales recognize revenue: Customer use to purchase goods and requests the seller to…
Q: Truck #1 has a list price of $20,550 and is acquired for a cash payment of $19,043. 2. Truck #2…
A:
Q: Eximco Corporation (based in Champaign, Illinois) has a number of transactions with companies in the…
A: a.
Q: CONVEX Ltd. is a new company that was established on 1st January, 2020 to oversee the production of…
A: SOLUTION A- The fair value of the equipment at the date of acquisition : $2,000,000 The book value…
Q: . Erika Company operates a customer loyalty program. The entity grants loyalty points for goods…
A: To begin with, keeping detailed records of your transactions will aid in the organization of the…
Q: A. Jamal Textile Enterprise is a textile manufacturer operating in Selangor. The company was…
A: Capital allowances are similar to expenses that can be claimed from the profit of a company, for the…
Q: BANGBANG operates and franchises restaurants around the world. As part of its franchise agreement,…
A: The contract includes a discount of P50,000 on the overall transaction, which would be allocated…
Q: predict its outcome though it is not expected to have a material adverse effect on the company. In…
A: The given cases are about to decide whether these are contingent gains or contingent losses and…
Q: Sunland Corporation operates a retail computer store. To improve delivery services to customers, the…
A: For Truck 1- The truck will be recorded at cash price. For Truck-2- Truck is purchased by issuing…
Q: Obra Ltd is your client. It has adopted IFRS as the financial reporting…
A: Calculation of Total cost of machinery after adjustment in purchase price is as follows. Trade…
According to relevant accounting standards, prepare
ACCOUNTS FOR INPUT:
| Intangible asset-Software | Intangible asset-Franchise | Intangible asset-Training |
| Intangible asset-Advertisement | Intangible asset-Patent right |
| Software expense | Franchise expense | Training expense | Advertising expense | Patent right expense |
| Bank | Revenue | Cost of sales | Payable | Receivable | Share capital |
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- Entity A is a Hong Kong-based limited company that participates in the building material industry for many years. It sells high-quality raw materials to different local and foreign manufacturers. Entity B is one of its loyal customers for more than 30 years. On 1 January 2020, Entity A received an advanced payment of $3,600,000 from Entity B through the Hong Kong City Bank for selling Material X. According to the contract terms, Entity A would only deliver Material X to Entity B on 31 December 2020. The regular cash-selling price of Material X was $3,600,000. The cost of sales of Material X was $2,563,000. On 1 January 2021, Entity A entered into another contract with Entity B. This contract stated that Entity A was required to transfer Material Y and Material Z to Entity B in exchange for $681,500. According to the contract terms, Entity A could invoice this full amount on 31 January 2021. Material Y was to be delivered on 28 February 2021 and Material Z was to be delivered on…The Krispy Donuts franchise has agreements with 100 franchisees across the United States to operate bakeries. On January 1, 2020, Krispy Donuts grants a franchisee the right to operate a bakery in Minneapolis, Minnesota using the Krispy Donut’s brand name, recipe, and other business concepts for a price of $800,000. On January 1, 2020, the franchisee made a down payment to the franchisor of $80,000 and paid the remaining $720,000 upfront fee on March 31, 2020. In exchange for the $800,000 payment, the franchisee received franchise rights, which include benefits of a national advertising campaign over the ten-year period (starting on the contract date) to promote the brand name of Krispy Donuts. The payment also includes the purchase of kitchen equipment from the franchisor (fair value of $96,000), and upfront training and assistance in setting up the franchise (fair value of $32,000). The training and assistance will be performed before the opening of the bakery. Equipment was…Lankford Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. Truck #1 has a list price of $37,500 and is acquired for a cash payment of $34,750. Truck #2 has a list price of $40,000 and is acquired for a down payment of $5,000 cash and a zero-interest-bearing note with a face amount of $35,000. The note is due April 1, 2021. Lankford would normally have to pay interest at a rate of 8% for such a borrowing, and the dealership has an incremental borrowing rate of 6%. Truck #3 has a list price of $40,000. It is acquired in exchange for a computer system that Lankford carries in inventory. The computer system cost $30,000 and is normally sold by Lankford for $38,000. Lankford uses a perpetual inventory system. T ruck #4 has a list price of $35,000. It is acquired in exchange for 1,000 shares of common stock in Lankford Corporation.…
- Sunland Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. 1. Truck #1 has a list price of $31,350 and is acquired for a cash payment of $29,051. 2. Truck #2 has a list price of $33,440 and is acquired for a down payment of $4,180 cash and a zero-interest-bearing note with a face amount of $29,260. The note is due April 1, 2021. Sunland would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has an incremental borrowing rate of 8%. 3. Truck #3 has a list price of $33,440. It is acquired in exchange for a computer system that Sunland carries in inventory. The computer system cost $25,080 and is normally sold by Sunland for $31,768. Sunland uses a perpetual inventory system. 4. Truck #4 has a list price of $29,260. It is acquired in exchange for 1,030 shares of common stock in…Pharoah Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. 1. Truck #1 has a list price of $20,550 and is acquired for a cash payment of $19,043. 2. Truck #2 has a list price of $21,920 and is acquired for a down payment of $2,740 cash and a zero-interest-bearing note with a face amount of $19,180. The note is due April 1, 2021. Pharoah would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has an incremental borrowing rate of 8%. 3. Truck #3 has a list price of $21,920. It is acquired in exchange for a computer system that Pharoah carries in inventory. The computer system cost $16,440 and is normally sold by Pharoah for $20,824. Pharoah uses a perpetual inventory system. 4. Truck #4 has a list price of $19,180. It is acquired in exchange for 1,090 shares of common stock in…On November 1, 2019, a newly established manufacturing outfit paid cash to acquire a patent for P1,200,000, a copyright for P750,000, and a franchise for P60,000. The patent expires at the end of 2020, has a total legal life of 20 years in the Philippines and is expected to produce benefits only for 5 years. The copyright has a service life of 10 years. The franchise allows the company to be exclusive sales agent for two years effective November 1, 2019. The amortization amount for the intangibles in 2023 is b. 65, 500 Someone give me a solution for this answer.
- Gravity Services Ltd (GS) is a company set up in Hong Kong providing the region with cloud computingservices like servers, storage, networking and software, to help customers to meet their business challenges. During the year ended 30 September 2020, it enters into two contracts.(i) Data Tab Ltd (DT) enters into a contract with GS for the use of an identified server for three years.GS delivers and installs the server at DT’s premises in accordance with DT’s instructions, and provides repair and maintenance services for the server, as needed, throughout the period of use. GSsubstitutes the server only in the case of malfunction. DT can decide which data to be stored and howto integrate the server to its operation. DT can change its decisions on how to operate the serversthroughout the period of use (a) advise GS whether the contract (i) falls within HKFRS 16 as a lease.Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The fair value of the award credits granted is reliably measured at P2,000,000. In 2020, the entity sold goods to customers for a total consideration of P9,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be Redeemed 2020 15,000 80% 2021 7,950 85% 2022 2,550 85% 2023 15,000 90% Required: Prepare journal entries from 2020 to 2023.Entity A is a manufacturer of consumer goods. On 1 January 2020, Entity A entered into a one-year contract to sell goods to a large global chain of retail stores. The customer committed to buying at least $90,000,000 of products in January. The contract required Entity A to make a non-refundable payment of $200,000 to the customer at the inception of the contract. The $200,000 payment is to compensate the customer for the changes required to its shelving to accommodate Entity A's products. Entity A duly paid this $200,000 to the customer on 3 January 2020. Entity A transferred goods with an invoice price of $98,000,000 to the customer on 31 January 2020. The customer agreed to settle the outstanding amount by two payments, i.e. 40% and 60% of the outstanding amount on 18 February 2020 and 31 March 2020 respectively. REQUIRED: Provide journal entries for Entity A from 1 January 2020 to 31 March 2020 under relevant accounting standards. ACCOUNT FOR INPUT: | Bank | Payable |…
- On June 1, 2020, Bridgeport Company sells $172,000 of shelving units to a local retailer, ShopBarb, which is planning to expand its stores in the area. Under the agreement, ShopBarb asks Bridgeport to retain the shelving units at its factory until the new stores are ready for installation. Title passes to ShopBarb at the time the agreement is signed. The shelving units are delivered to the stores on September 1, 2020, and ShopBarb pays in full. Prepare the journal entries for this bill-and-hold arrangement (assuming that conditions for recognizing the sale as a bill-and-hold sale have been met) for Bridgeport on June 1 and September 1, 2020. The cost of the shelving units to Bridgeport is $88,000.On January 1, 2022, Heeseung Ramen Shop granted a franchise to a franchisee. The franchise agreement required the franchisee to pay a nonrefundable upfront fee in the amount of P550,000. The franchisee paid the upfront fee immediately on January 1, 2022. A continuing franchise fee of 10% based on annual sales is to be paid by the franchisee. It is the obligation of Heeseung Ramen Shop to construct a franchise stall, provide the franchisee a right to access the trade name for a period of five years and to deliver 10,000 kg. of ramen noodles to the franchisee. On October 1, 2022, Heeseung already finished construction of the stall. During 2022, 2,000 kilos of ramen noodles were delivered. The franchisee reported sales of P2,000,000 during 2022. The stand-alone prices are determined as follows: · Tradename – P400,000 · Ramen noodles – P150,000 · Stall – Not directly observable Based on the current market conditions, it was estimated that a customer in the market is willing…On June 1, 2020, Mills Company sells $200,000 of shelving units to a local retailer, ShopBarb, which is planning to expand its stores in the area. Under the agreement, ShopBarb asks Mills to retain the shelving units at its factory until the new stores are ready for installation. Title passes to ShopBarb at the time the agreement is signed. The shelving units are delivered to the stores on September 1, 2020, and ShopBarb pays in full. Prepare the journal entries for this bill-and-hold arrangement (assuming that conditions for recognizing the sale as a bill-and-hold sale have been met) for Mills on June 1 and September 1, 2020. The cost of the shelving units to Mills is $110,000.