Unearned Service Revenue

Q: The accountant who posted the sale is now worried that they treated this incorrectly. They come to…

A: Revenue recognition refers to the timing and amount of the revenue that is to be recorded in the…

Q: Bebe Co. purchased equipment with an invoice price of 1,680,000 on March 5, 2021. How much would be…

A: Under the Tax Code, the amount of input tax on imported or purchased capital goods which will be…

Q: On July 1, 2021, Concord Inc. entered into a contract to deliver one of its specialty machines to…

A: Contract Entered for Purchase of Machine: Equipment Purchase Agreement means an agreement between…

Q: Oriole Equipment Company sells computers for $1,220 each and also gives each customer a 2-year…

A: 1. Date Account Titles and Explanation Debit Credit 2020 Accounts Receivable ($1220*950)…

Q: Regal Appliances consigned 60 television sets to Gal Company on January 1, 2020 for sale at P10,800…

A: Consignment sales are sales made by GAL on behalf of Regal.

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: July 2020, Sykick Software Company licenses its accounting software to RayHawk Corporation at a cost…

A: Journal entries are passed following the golden rules of accounting. Debit all assets and expenses…

Q: On May 3, 2020, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The…

A: Consignment is an arrangement in which goods are left in the possession of an authorized third party…

Q: On May 1, 2020, Marin Inc. entered into a contract to deliver one of its specialty mowers to…

A: DATE  PARTICULARS DEBIT CREDIT a)       May 1, 2020 No entry is required as a contract was…

Q: Question ：The accountant who posted the sale is now worried that they treated this incorrectly. They…

A:

Q: During August 5, 2020, Hiro marketing sold an item worth P 500,000 for P 750,000. The required down…

A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…

Q: A company sells equipment to customers for $491,000 on January 1st, 2021. The sales price includes…

A: Unearned Service Revenue is a liability account that is used to record advanced collections from…

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: Aria Perfume, Inc., sold 3,210 boxes of white musk soap during January of 2021 at the price of $90…

A: Number of performance Obligation In the given case, contract has not mention but it clear the…

Q: (a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account…

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: Bebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2021. How much would be…

A: Value Added Tax(VAT)-:It is a value-added tax, understood in a few countries as a product and…

Q: During 2020, ABC Company signed a non-cancelable contract with XYZ Company to purchase 5,000 units…

A: Non-Cancelable Purchase Contract: A promise to buy a particular number of things later on at a fixed…

Q: On May 1, 2020, Tamarisk Inc. entered into a contract to deliver one of its specialty mowers to…

A: Preparation of Journal Entries Here the situation is a contract agreement between Kickapoo…

Q: In January 2019, Dumdum Inc. paid property taxes on its factory building for the calendar  year 2019…

A: Here in this question, we are require to determine how much expense need to reflect in each interim…

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: A company sold 8,000 units of its signature product for the calendar year ended December 31, 2020.…

A: The provision for warranty is created to record the estimated warranty Expenses for the period. The…

Q: e year end of GLCN Co is 30 November 2020. The company pays for its electricity by a standing order…

A: The profit and loss account records income and expense on accrual basis that is revenue and…

Q: Alvarado Company sells a machine for $7,400 with a 12-month warranty agreement that requires the…

A: Calculate sale of machinery and warranty expense incurred in 2020: Sale of machinery = $7,400 *…

Q: On July 1, 2021, Blossom Inc. entered into a contract to deliver one of its specialty machines to…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On January 2, 2020, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing…

A: Note receivable refers to the promise to receive amount of money on some day in future. It shows the…

Q: Crazy Company requires advance payments with special orders for machinery constructed to customers…

A: Advance payments from the customers refer to the payments for goods and services which have not been…

Q: On January 1, Nathan Company enters into a contract to provide custom-made equipment to Cushing…

A: Solution 1 The above question is related to revenue recognized concept. In above case the business…

Q: Ivanhoe Company sells on credits goods that cost $304,500 to Ricard Company for $418,500 on January…

A: Journal entry is a process of recording the business transactions in the books of accounts for the…

Q: Allee Corp. is evaluating a revenue arrangement to determine proper revenue recognition. The…

A:

Q: At December 31, 2020, Shamrock, Inc., a manufacturer, has outstanding noncancelable purchase…

A: Purchase commitment is an agreement between buyer and seller to purchase a certain number of units…

Q: On May 1, 2020, Nash Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo…

A: Date Particulars Debit Credit May 1, 2020 No entry     May 15, 2020 Cash $889      Unearned…

Q: July 31, 2020, Stewart Security was awarded a contract for $102,000 to provide 3,000 hours of…

A: Here revenue  is to be recognized  over a period  of time. As per IFRS 15 any amount  received  as…

Q: On January 1, SaLow Company enters into a contract to provide custom-made equipment to ByHi…

A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of…

Q: On October 10, 2020, Flounder Co. entered into a contract with Belisle Inc. to transfer Flounder’s…

A: Journal Entries in the Books of Flounder Co. for the Year 2020 15th Dec. 2020        Belisle Inc.…

Q: Omicron plc prepares financial statements to 31 December each year. On 1 January 2021, Omicron plc…

A: Here discuss about the details of the contract which are made by the company to sell the product…

Q: Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020. The…

A: a. Date Account Titles and Explanation Debit Credit January 2, 2020 Accounts…

Q: At December 31, 2020, Feel Company had 20,000 gift certificates outstanding, which had been sold to…

A: The cash basis of accounting says the firm has to record the transaction only when corresponding…

Q: Wildhorse Company sells a machine for $6,750 with a 12-month warranty agreement that requires the…

A: Wildhorse company is providing the warranty on sale of the machine, here Wildhorse company have to…

Q: On January 1, 2020, Carly Fashions Inc. enters into a contract with a regional retail company to…

A: Standalone price of the blouse per piece=$20,000500=$40 per piece

Q: Blossom Equipment Company sells computers for $1,540 each and also gives each customer a 2-year…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: Lux Hotels Inc. has signed a service outsourcing contract with Deluxe Rooms Inc. for 3 million,…

A: As per revenue recognition principle, all revenues of the business should be recorded only when…

Q: A company enters into a contract to build a factory for a customer. The agreed price is P2M and the…

A: Answer - Expected Value of the Transaction Price of the Contract -  The Expected Value of…

Q: On June 1, Forde Auto Manufacturer sells a 4-door sedan to a dealer for $33,000, which includes…

A: Total sales price = 20 vehicles x $32,450                           = $649,000 Vehicle = 20 vehicles…

Q: Denim, Inc. entered into a contract to sell equipment to Levi LLC. on October 1, 2021. Along with…

A: The above question is based on accounting standard 115, i.e. Revenue from contracts with customer…

Q: Beautiful Company sold a set of washing machine and a dryer for a total contract price of P100,000…

A: Performance Obligation :— It is promise to transfer distinct product or services to customers.

Q: Denim, Inc. entered into a contract to sell equipment to Levi LLC. on October 1, 2021. Along with…

A: Sale of equipment: The sale of equipment is the decision taken by the company to sell the equipment.…

Q: ABC SAOG has entered a contract to supply a machinery on 1st December 2019 for OMR 1000,000 along…

A: Amount of Obligation for Maintenance Service = Cash Equivalent Price of Contract - Selling Price of…

Q: On May 1, 2021,Varga Tech Services signed a $6,000 consulting contract with Shaffer Holdings. The…

A: For recognizing the revenues, revenues must have accrued to the business. In the given situation,…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.