Sandhill Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 680 pounds of a spice mixture at $3.40 per pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had risen to $3.57 per pound. In 2020, Sandhill should recogn
Q: During 2021, Truffle Company sold 500,000 boxes of hotcakes under a new sales promotional program.…
A: The unredeemed coupon is treated as a liability because the company either has to provide goods or…
Q: On August 5, 2021, Sheridan Furniture shipped 40 dining sets on consignment to Furniture Outlet,…
A: In case of consignment sales, one party consignor consigns or issues goods to another party…
Q: Teal Company sells goods to Flint Company during 2020. It offers Flint the following rebates based…
A: As per the IFRS, Revenue should be booked only when it is highly probable that the amount will be…
Q: PEANUTS Company, a grocery retailer operates a customer loyalty program. It grants program members…
A: In the case of accounting for a customer loyalty programme, a portion of sales from the total sales…
Q: On July 15, 2020, Dahlin signed a contract to provide Sabre-Fresh Baking Co. with 100…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: ABC Company, a grocery retailer, operates a customer loyalty program. The entity grants program…
A: As per revenue recognition principle, all revenues that are related with specific period that should…
Q: Beginning the year 2021, the Chicken Wings Manufacturing Company (CWMC) began marketing its iphone…
A: Unearned revenue for unredeemed premiums is calculated by multiplying the sales revenue per premium…
Q: Sandhill Company sells goods that cost $275,000 to Indigo Company for $440,000 on January 2, 2020.…
A: Goods = 440,000 x 408,600/(41,400 + 408,600) = $399,520 Installation = 440,000 x 41,400/(41,400 +…
Q: Sheridan Company sells goods that cost $320,000 to Ricard Company for $403,500 on January 2, 2020.…
A: a. Date Account title and explanation Debit ($) Credit ($) January 2,2020 Accounts receivable…
Q: Careful Company sells goods that cost P600,000 to a customer for P800,000 on December 20, 2021. The…
A: Revenue will be recognise as and when performance obligation satisfied. It can be recognise at the…
Q: What entry would you use to account for the initial transaction and why do you have a different…
A: As can be seen from the question above, Jaecke has entered into an agreement with Hydraulic, Inc. to…
Q: 58. During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at…
A: Purchase commitment is a form of agreement or contract with company and their suppliers, which says…
Q: Indicate the income statement and balance sheet reporting by Pronghorn at October 31, 2020, of the…
A: Sales returns and allowances means value of goods that are being returned by customer or allowance…
Q: SUGA Company sold 485,000 boxes
A: Accounting treatment of Coupon / Premium Most of the business promote the coupon / premium to their…
Q: On May 3, 2020, Flint Company consigned 80 freezers, costing $450 each, to Remmers Company. The cost…
A: Given information is: Goods consigned 80 freezers costing $450 each
Q: Shrek Company consigned 100 freezers costing P50,000 each to Disney Company on January 2, 2020. The…
A: Consignment seems to be an agreement between a distributor (consignee) and their provider…
Q: During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at P900…
A: Solution: Amount of Purchases should be recorded on May 9, 2022 = Nos of sacks purchases * Price per…
Q: During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each…
A: Accounting treatment of Coupon / Premium Most of the business promote the coupon / premium to their…
Q: Oriole Company sells goods that cost $320,000 to Sheffield Company for $435,000 on January 2, 2020.…
A: Introduction: Sales revenue: Revenue generated on selling of goods called as Sales revenue.
Q: On Setpember 15, 2019, Lopez, Inc. contracted to provide Cluck-Cluck Chicken Processing, LLC with an…
A: Performance obligation means promise with a customer in a contract to transfer either goods or…
Q: Sephora offers its customers a traveller's gift set as a premium in exchange for $ 40 if the…
A: Journal entry is the first step in the process of accounting, which is recording of financial data…
Q: On July 15, 2024, Ortiz & Company signed a contract to provide EverFresh Bakery with an…
A: Calibration contract service is for one year. However scale and software has been delivered in the…
Q: On 1 July 2019, Entity A entered into the Contract X with a customer, Entity B, to sell Product A…
A: Date Particulars Amount Amount 1 July No Entry 30 September Payable A/c To Revenue…
Q: PEANUTS Company, a grocery retailer operates a customer loyalty program. It grants program members…
A: Company generally provides loyalty program to its customers in which it grants loyalty points to its…
Q: Mimi Company has been having difficulty obtaining necessary raw materials for its manufacturing…
A: At the year end, price of raw material has fallen down and since the purchase order commitment…
Q: Compute Premium Liability in 2019.
A: Premium Liability is the expected amount of redemptions yet to be for the year 2019 Premium…
Q: In January 2020, a retailer sells 100 paper shredders to customers for $100 each. The terms of the…
A: Refund liability: When a company sells its products with a right of return to customers it has to…
Q: On October 1,2018, Bane Company entered into a 6-month, 5,200,000 purchase commitment for a supply…
A: Purchase commitment is the situation, when a buyer of a firm commit to buy from the particular…
Q: During 2020, ABC Company signed a non-cancelable contract with XYZ Company to purchase 5,000 units…
A: The Contract to purchase 5000 units were made at a price of P1500 per unit delivery to be made in…
Q: During 2019, Boge Corporation signed a noncancelable contract to purchase 10,000 bushels of soybeans…
A: Every business should be documented in at least two locations, according to the logic of a journal…
Q: Wildhorse Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 570 pounds of…
A: The price of the inventory has been increased by $0.28 per pound but as per the US GAAP, inventory…
Q: XZ Company, a grocery retailer operates a customer loyalty program. It grants program members…
A: In a customer loyalty program a company grants its members loyalty points on the spending the amount…
Q: During 2019, R Corp., a manufacturer of chocolate candies, contracted to purchase 100,000 pounds of…
A: Loss on purchase commitment = (contracted price - new price) x purchase in pounds = (1 - 0.80) x…
Q: in the United States. The invoice price was €4,000,000, and delivery and payment were to be made in…
A: Business deals with foreign suppliers and customers usually involve a risk of foreign exchange rate…
Q: Carla Vista Corporation, a manufacturer of Mexican foods, contracted in 2020 to purchase 2700 pounds…
A: Given: Price in 2020 = $5.70 Price in 2021 = $5.40 Decrease in Price = $0.30
Q: During 2016, Palazzo Company signed a non-cancelable contract with Crown Milling Company to purchase…
A: Non-cancelable contracts are ones that cannot be modified or refused, and the terms and conditions…
Q: On September 1, 2021, Laguna Grill determined that it will need to purchase 100,000 kilos of tuna…
A: A forward contract means the contract which is used to protect against the price increase in the…
Q: During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each…
A: Premium expense refers to the expense of the insurance benefit incurred by the candidate as a part…
Q: The Krispy Donuts franchise has agreements with 100 franchisees across the United States to operate…
A: Particulars Amount Franchise Deferred Revenue 800000 Less: Equipment sale 96000 Balance…
Q: On August 15, 2020, Japan Ideas consigned 770 electronic play systems, costing $100 each, to YoYo…
A: In case of consignment of goods, the inventory value in hands of consignee should include the cost…
Q: Sandhill Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 560 pounds of a…
A: Inventory: It is the asset of any entity which could be a finished good or stock that will be held…
Q: Carla Vista Company sells goods to Pearl Company during 2020. It offers Pearl the following rebates…
A: A rebate is a type of purchase discount that is provided in the form of a reduction, return, or…
Q: Cullumber Company sells goods to Riverbed Company during 2020. It offers Riverbed the following…
A: This question deals with the concept of revenue recognition of the entity. When entity sells the…
Q: At December 31, 2020, Ashley Co. has outstanding purchase commitments for 150,000 gallons, at $6.20…
A:
Q: During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at P900…
A: Solution: Amount of loss on purchase commitment should be recognized on Dec 31, 2021 = (contract…
Q: Wildhorse Manufacturing Inc. is a local manufacturing company. Rather than sell its product…
A: Following are the requisite journal entries
Q: Beginning the year 2020, the ABC Company began marketing its phone. Each phone sells for P50,000. To…
A: As per IFRS 15 -Revenue from contracts with customers the unearned revenue to be recognized by the…
Q: The Krispy Donuts franchise has agreements with 100 franchisees across the United States to operate…
A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: On October 2, 2020, Laplante Company sold $6,000 of its elite camping gear (with a cost of $3,600)…
A: a. Prepare journal entries for Laplante to record (1) the sale on October 2, 2020, (2) the granting…
Sandhill Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 680 pounds of a spice mixture at $3.40 per pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had risen to $3.57 per pound. In 2020, Sandhill should recognize
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Sandhill Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 560 pounds of a spice mixture at $2.80 per pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had risen to $3.09 per pound. In 2020, Sandhill should recognize No gain or loss. a gain of $162.40. a loss of $1568.00. a loss of $162.40.In August 2020, Atlantic Corp, commits to selling 100 of its merchandise to Boy Co. for P30,000 (P300 per product). The merchandise is to be delivered to Boy over the next 6 months. After 60 mierchandises were delivered, the contract is modified and Commonio promises to deliver 80 more products for an additional P21,600 (P270 per station). At year-end, Atlantic delivered an additional 90 products. All sales are cash on delivery How much revenue will be recognized on the contract for the year 2020?Teal Company sells goods to Flint Company during 2020. It offers Flint the following rebates based on total sales to Flint. If total sales to Flint are 10,900 units, it will grant a rebate of 3%. If it sells up to 18,800 units, it will grant a rebate of 5%. If it sells up to 30,900 units, it will grant a rebate of 6%. In the first quarter of the year, Teal sells 11,800 units to Flint at a sales price of $129,800. Teal, based on past experience, has sold over 42,400 units to Flint, and these sales normally take place in the third quarter of the year.What amount of revenue should Teal report for the sale of the 11,800 units in the first quarter of the year. Revenue
- In January 2020, a retailer sells 100 paper shredders to customers for $100 each. The terms of the sales include a right for the customer to return a shredder within 180 days of the sale date. Based on historical trends, the retailer uses the expected value method and estimates a 40% probability that 8 paper shredders will be returned, a 45% probability that 9 paper shredders will be returned, and a 15% probability that 12 paper shredders will be returned. The retailer also concludes it is highly probable that there will not be a significant reversal of revenue recognized based on this return estimate. Thus, the agreement is a valid contract. Assume no actual returns in January 2020. Determine (1) the transaction price for the sale of shredders for January 2020, and (2) the refund liability balance on January 31, 2020. Round expected returns to the nearest whole unit in your calculations.Carla Vista Corporation, a manufacturer of Mexican foods, contracted in 2020 to purchase 2700 pounds of a spice mixture at $5.70 per pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had dropped to $5.40 per pound. In 2020, Carla Vista should recognize a loss of $15390.00. no gain or loss. a loss of $810.00. a gain of $810.00.On May 3, 2020, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $840 and was paid by Eisler Company. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $200, and total installation costs of $320 on the freezers sold. Instructions a. Compute the inventory value of the units unsold in the hands of the consignee. b. Compute the profit for the consignor for the units sold. c. Compute the amount of cash that will be remitted by the consignee.
- On October 2, 2020, Ivanhoe Company sold $5,630 of its elite camping gear (with a cost of $3,320) to Lynch Outfitters. As part of the sales agreement, Ivanhoe includes a provision that if Lynch is dissatisfied with the product, Ivanhoe will grant an allowance on the sales price or agree to take the product back (although returns are rare, given the long-term relationship between Ivanhoe and Lynch). Ivanhoe expects total allowances to Lynch to be $760. On October 16, 2020, Ivanhoe grants an allowance of $400 to Lynch because the color for some of the items delivered was a bit different than what appeared in the catalog. Prepare journal entries for Ivanhoe to record (1) the sale on October 2, 2020, (2) the granting of the allowance on October 16, 2020, and, (3) any adjusting required on October 31, 2020 (when Ivanhoe prepares financial statements). Ivanhoe now estimates additional allowances of $260 will be granted to Lynch in the future. (Credit account titles are…During 2019, Boge Corporation signed a noncancelable contract to purchase 10,000 bushels of soybeans at $5 per bushel with delivery to be made in 2020. On December 31, 2019, the price of soybeans had fallen to $4.50 per bushel. On May 1, 2020, Boge takes delivery of the soybeans when the price is $4.75 per bushel.Prepare the journal entries required on December 31, 2019, and May 1, 2020.On May 3, 2020, Flint Company consigned 80 freezers, costing $450 each, to Remmers Company. The cost of shipping the freezers amounted to $870 and was paid by Flint Company. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $730 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $200, and total installation costs of $310 on the freezers sold.(Round answers to 0 decimal places, e.g. 5,275.)(a) Compute the inventory value of the units unsold in the hands of the consignee. Inventory value $enter the inventory value in dollars (b) Compute the profit for the consignor for the units sold. Profit on consignment sales $enter the profit on consignment sales in dollars (c) Compute the amount of cash that will be remitted by the consignee. Remittance from consignee $enter the amount of cash that will be remitted by the consignee rounded to 0…
- On October 2, 2020, Laplante Company sold $6,000 of its elite camping gear (with a cost of $3,600) to Lynch Outfitters. As part of the sales agreement, Laplante includes a provision that if Lynch is dissatisfied with the product, Laplante will grant an allowance on the sales price or agree to take the product back (although returns are rare, given the long-term relationship between Laplante and Lynch). Lynch expects total allowances to Lynch to be $800. On October 16, 2020, Laplante grants an allowance of $400 to Lynch because the color for some of the items delivered was a bit different than what appeared in the catalog. Instructions a. Prepare journal entries for Laplante to record (1) the sale on October 2, 2020, (2) the granting of the allowance on October 16, 2020, and, (c) any adjusting required on October 31, 2020 (when Laplante prepares financial statements). Laplante now estimates additional allowances of $250 will be granted to Lynch in the future. b. Indicate the…In August 2020, Atlantic Corp, commits to selling 100 of its merchandise to Boy Co. for P30,000 (P300 per product). The merchandise is to be delivered to Boy over the next 6 months. After 60 mierchandises were delivered, the contract is modified and Commonio promises to deliver 80 more products for an additional P21,600 (P270 per station). At year-end, Atlantic delivered an additional 90 products. All sales are cash on delivery Assume that the additional terms anpective modification to the original contract. How much revenue will be recognized on the contract for the year 2020?In September 2020, Gaertner Corp. commits to selling 150 of its iPhone-compatible docking stations to Better Buy Co. for $15,000 ($100 per product). The stations are delivered to Better Buy over the next 6 months. After 90 stations are delivered, the contract is modified and Gaertner promises to deliver an additional 45 products for an additional $4,275 ($95 per station). All sales are cash on delivery. Instructions a. Prepare the journal entry for Gaertner for the sale of the first 90 stations. The cost of each station is $54. b. Prepare the journal entry for the sale of 10 more stations after the contract modification, assuming that the price for the additional stations reflects the standalone selling price at the time of the contract modification. In addition, the additional stations are distinct from the original products as Gaertner regularly sells the products separately. c. Prepare the journal entry for the sale of 10 more stations (as in (b)), assuming that the pricing…