Red Windows manufactures and sells custom storm windows for enclosed porches. Red also provides installation service for the windows. The installation process does notinvolve changes in the windows, so this service can be provided by other vendors. Red enters into the following contract on 15 Jun 2020, with a local homeowner. The customer purchases windows for a price of £7,500 and chooses Red to do the installation. Red charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of £1,000. The customer pays Red £6,000 (which equals the fair value of the windows, which have a cost of £4,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on 15 Jul-2020, Red completes installation on 4 Aug 2020, and the customer pays the balance due. e Requirede Prepare the joumal entries for Red on all the dates mentioned above. If no entry needed, please specify the reason. (Round amounts to nearest dollar.)e

Red Windows manufactures and sells custom storm windows for enclosed porches. Red also provides installation service for the windows. The installation process does notinvolve changes in the windows, so this service can be provided by other vendors. Red enters into the following contract on 15 Jun 2020, with a local homeowner. The customer purchases windows for a price of £7,500 and chooses Red to do the installation. Red charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of £1,000. The customer pays Red £6,000 (which equals the fair value of the windows, which have a cost of £4,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on 15 Jul-2020, Red completes installation on 4 Aug 2020, and the customer pays the balance due. e Requirede Prepare the joumal entries for Red on all the dates mentioned above. If no entry needed, please specify the reason. (Round amounts to nearest dollar.)e

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter7: Inventory Cost Flow Assumptions (fifolifo)

Section: Chapter Questions

Problem 8R: Reset the November 20 purchase to 150 units, including column G. To test your formulas, suppose that...

See similar textbooks

Similar questions

Provide a better solution On January 1, 2021, VVV received from ABC 300 pieces of bread toaster. VV was to sell these on consignment at 50% above original cost, for a 15% commission on the selling price. After selling 200 pieces, VVV had the remaining unsold units repaired for some electrical defects which he spent P2,000. ABC subsequently increased the selling price of the remaining units to P330 per unit. On January 31,2021, VVV remitted P64,980 to ABC after deducting the 15% commission, P850 for delivery expenses of sold units, and P2,000 for the repair of 100 units. The consignment goods cost ABC P200 per unit, and P900 had been paid to ship them to VVV shop. All expenses in connection with the consignment were reimbursable to the consignee. Determine the value inventory to be presented in the statement of financial position.
Reset the November 20 purchase to 150 units, including column G. To test your formulas, suppose that Del had sold 600 units rather than 500. Sales now total 384,000. The extra units sold come from the May 13 purchase (25 units) and the November 20 purchase (75 units). Change cell B17 to 600 and cells D32 through G32 to 384,000. Alter columns E, F, and G in the Data Section to reflect the change. Your formulas should automatically redo the Calculations and Answer sections. Print the results again.
Luke sells machines, and also offers installation and technical support services. The individual selling prices of each product are shown below. Sale price of goods $75 Installation $25 A year’s service $50 Company X bought a machine on 1 May 2018 and was charged a reduced price of $100. Luke only offers discounts when customers purchase a package of products together. According to IFRS 15 Revenue from Contracts with Customers, how much should be recorded in revenue for the year ended 31 December 2019? Answer should be rounded to the nearest $.
Larkspur Windows manufactures and sells custom storm windows for three-season porches. Larkspur also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Larkspur enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,370 and chooses Larkspur to do the installation. Larkspur charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $590. The customer pays Larkspur $1,920 (which equals the standalone selling price of the windows, which have a cost of $1,120) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Larkspur completes installation on October 15, 2020, and the customer pays the balance due.Prepare the journal entries…
cMr. Assad a Wholesaler buys a product from the Al Mazoon manufacturing company at RO 700 and pays VAT at the prescribed rate of 10%. a retailer buys a product from the wholesaler at RO 800 and the wholesaler charges VAT at the prescribed rate of 10%. The retailer fixes the price at RO 1000 and charges VAT at the same rate. Mr. Yousuf buys the product from the ABC LLC. What is the price including VAT that Mr. Yousuf has to pay to buy the Product? What is input tax and output tax? Discuss Amount of output tax for the retailer and wholesaler. How much VAT does the retailer pay to the government? VAT is different from sales tax system. Explain and give reason to your answer
Windsor Windows manufactures and sells custom storm windows for enclosed porches. Windsor also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors. Windsor enters into the following contract on June 1, 2018, with a local homeowner. The customer purchases windows for a price of £5,700 and chooses Windsor to do the installation. Windsor charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of £2,200. The customer pays Windsor £6,000 (which equals the fair value of the windows, which have a cost of £3,500) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on August 1, 2018, Windsor completes installation on September 15, 2018, and the customer pays the balance due. Prepare the journal entries for Windsor in 2018
DO THE (D) and (E) part Mr. Assad a Wholesaler buys a product from the Al Mazoon manufacturing company at RO 700 and pays VAT at the prescribed rate of 10%. a retailer buys a product from the wholesaler at RO 800 and the wholesaler charges VAT at the prescribed rate of 10%. The retailer fixes the price at RO 1000 and charges VAT at the same rate. Mr. Yousuf buys the product from the ABC LLC. What is the price including VAT that Mr. Yousuf has to pay to buy the Product? What is input tax and output tax? Discuss Amount of output tax for the retailer and wholesaler. How much VAT does the retailer pay to the government? VAT is different from sales tax system. Explain and give reason to your answer
Blue Windows manufactures and sells custom storm windows for three-season porches. Blue also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Blue enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,420 and chooses Blue to do the installation. Blue charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Blue $1,920 (which equals the standalone selling price of the windows, which have a cost of $1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Blue completes installation on October 15, 2020, and the customer pays the balance due. 1) Blue estimates the standalone selling price of the installation based on an estimated cost of $440 plus a margin of 20% on cost.Prepare…
Windsor Windows manufactures and sells custom storm windows for enclosed porches. Windsor also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors. Windsor enters into the following contract on June 1, 2018, with a local homeowner. The customer purchases windows for a price of £4,700 and chooses Windsor to do the installation. Windsor charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of £1,200. The customer pays Windsor £4,000 (which equals the fair value of the windows, which have a cost of £2,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on August 1, 2018, Windsor completes installation on September 15, 2018, and the customer pays the balance due. Prepare the journal entries for Windsor in 2018. (Round…
A firm buys and sell two models, P and Q. The following unit’s cost are available (all figures are in GHc and all the cost are borne by the firm). P Q Purchase 100 200 Delivery cost from supplier 20 30 Delivery costs to customer 22 40 Packaging costs 15 18 Selling price 150 300 Required: calculate the figure to be included in closing inventory for a unit each model, according o IAS 2 Inventories.
Prepare the journal entries for Sunland in 2017. Sunland Windows manufactures and sells custom storm windows for three-season porches. Sunland also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sunland enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,490 and chooses Sunland to do the installation. Sunland charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $590. The customer pays Sunland $1,950 (which equals the standalone selling price of the windows, which have a cost of $1,110) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Sunland completes installation on October 15, 2017, and the customer pays the…
ABC manufactures and sells custom windows for enclosed porches. ABC also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors. ABC enters into the following contract on June 1, 2022, with a local homeowner. The customer purchases windows for a price of P6,650 and chooses ABC to do installation. ABC charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of P1,710. The customer pays ABC P5,700 (which equals the fair value of the windows, which have a cost of P3,230) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on August 1, 2022, ABC completes installation on September 15, 2022 and the customer pays the balance due. Compute for the revenue to be recognize on September 15, 2022.