Wildhorse Co. purchases a new delivery van for $83000. The sales taxes are $5250. The logo of the company is painted on the side of the van for $1200. The van's annual license is $200. The van undergoes safety testing for $270. What does Wildhorse record as the cost of the new van? O $88250. O $89920. O $89470. O $89720.
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- 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.At the end of Year 1, Herkimer Co. sells two laptops for 1,800 each. Based on the information in RE11-6 in Year 1, prepare the journal entries to record the purchase of the laptops, the depreciation on the laptops, and the sale of the laptops.On January 1, 2021, Famous Inc. acquired a piece of equipment for a list price of $340,000. It paid $50,000 cash and issued a 3-year note payable for the remainder. The note requires annual payments of a 3% interest every December 31. Famous Ic. also paid $16,000 to install the equipment, and $6,000 to test it. At the end of the testing, the company was able to obtain an output of good quality and sold it for $2,300. Famous Inc.'s incremental borrowing rate is 5%. The equipment's useful life is $80,000 at the end of its 10-year useful life. It was ready for use on March 31, 2021, but the company started using it on April 30th, 2021. Famous is a public company and uses the straight-line method to depreciate its equipment. Required- 1- Prepare the journal entry to record the acquisition of the equipment. 2- Prepare the required adjusting entries on December 31, 2021.
- Leonard Co. sells $600,000 (cost $480,000) of vehicles to a local car dealer, Carlson Inc. The vehicles were ready to go when the contract was signed on May 31, 2021 and title passed to Carlson at that date. Carlson was undergoing a significant renovation to its dealership at the time and as a result, Carlson requested that Leonard retain the vehicles at its warehouse until July 15, 2021. Payment was made in full on June 30, 2021. At what date can Leonard Co. recognize the revenue relating to the sale of the vehicles?The list price of a secondhand van was P300,000 at a local car dealership. However, a customer convinced the dealer to sell the van for P250,000 (the van had cost the dealer P200,000). The amount of revenue that would be recognized as a result of the sale is:On June 1, 2020, Mylene Company sells a new car costing P1,620,000 for P2,268,000. A used car is accepted as down payment, P432,000 being allowed on trade-in. The used car can be resold for P486,000 after reconditioning cost of P64,000. The company expects to make a 20% gross profit on the sale of the used cars. During the period, P270,000 was collected on the contract. How much is the realized gross profit in 2020?
- A company sells a stove to a customer for a price of $2,000 which includes the installation. The fair value of the installation alone is $300 and the fair value of the stove alone is $1,800. The stove was delivered on October 1, 2020 and the installation occurred on October 15, 2020. The customer pays $1,850 on the date of the delivery and the balance on the date of the installation. What would the journal entry include on the date of the delivery of the stove? a Credit to Revenue of $1,714 a Debit to Unearned Revenue of $136 a Debit to Cash of $2,000 a Credit to Revenue of $1,800 A company sells windows to a customer for a price of $2400 which includes the installation of the windows. The fair value of the installation alone is $500 and the fair value of the Windows alone is $2000. The windows were delivered on September 1, 2020 and the installation occurred on September 15, 2020. What revenue is recorded on September 1? Group of answer choices $2,000 $440 $2,400…On January 1, 2021, VVV Shop received from ABC 300 pieces of bread toasters. VVV 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 for 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 consigned 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. Please provide a good accounting form for the solutionOn January 1, 2021, VVV Shop received from ABC 300 pieces of bread toasters. VVV 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 for 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 consigned 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.
- On May 2, 2019 PIONEER, PHILS INC. Ships ten (10) Compact Disc Stereo to KALIDAD Appliance Center. Each Stereo system costs P10,000 and is to be sold at an advertised price of P14,000. PIONEER Paid freight in the amount of P1,200 while KALIDAD incurred a cartage of P500, which is reimbursable. The consignee is entitled to a commission of 20% of the authorized selling price. The Consignee sold all the units and remitted the balance due to the consignor along with the account sales. Required: 1. Prepare the account salesOn May 2, 2019 PIONEER, PHILS INC. Ships ten (10) Compact Disc Stereo to KALIDAD Appliance Center. Each Stereo system costs P10,000 and is to be sold at an advertised price of P14,000. PIONEER Paid freight in the amount of P1,200 while KALIDAD incurred a cartage of P500, which is reimbursable. The consignee is entitled to a commission of 20% of the authorized selling price. The Consignee sold all the units and remitted the balance due to the consignor along with the account sales. Required: 1. Prepare the journal entries in the books of hte consignee 2. Prepare the account salesOn May 2, 2019 PIONEER, PHILS INC. Ships ten (10) Compact Disc Stereo to KALIDAD Appliance Center. Each Stereo system costs P10,000 and is to be sold at an advertised price of P14,000. PIONEER Paid freight in the amount of P1,200 while KALIDAD incurred a cartage of P500, which is reimbursable. The consignee is entitled to a commission of 20% of the authorized selling price. The Consignee sold all the units and remitted the balance due to the consignor along with the account sales. Required: 1. Prepare the journal entries in the books of the consignee