INTERMEDIATE ACCOUNTING RMU 9TH EDITION
9th Edition
ISBN: 9781260998726
Author: SPICELAND
Publisher: MCG
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Chapter 13, Problem 13.8E
(1)
To determine
Deferred Revenues: Deferred revenue is the amount received in advance and is not earned in the current year. This is unearned income for a company. It is classified under current liability and thus, company becomes liable to offer goods and services in the upcoming years.
To prepare:
(2)
To determine
To prepare: Journal entry to record the collection of refundable deposit.
(3)
To determine
To prepare: Journal entry to record credit sales revenue and sales taxes.
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EXERCISE I5
Lincoln Company sells its products in returnable containers.The customers are given a period of 2 years from
the year of delivery to return the containers. Containers not returned within the prescribed period are
considered sold at the amount of deposits forfeited. At January 1,2020, the balance of the account Refundable
Deposits on Returnable Containers is P 250,000, consisting of the following:
For containers delivered to customers in :
2018
P 100,000
2019
150,000
During 2020, the company received additional deposits of P 200,000 for containers delivered to customers
during 2020 for return of containers amounted to P 267,000,as follows:
Deliveries in 2018
P 82,000
Deliveries in 2019
T10,000
Deliveries in 2020
75,000
REQUIRED:
Compute the balance of Refundable Deposits for Returnable Containers at December 31,2020.
ok
The following transactions took place for Smart Solutions Incorporated.
ces
2020
a. July 1
Loaned $70,000 to employees of the company and received back one-year, 10 percent notes.
b. December 31 Accrued interest on the notes.
2021
c. July 1
d. July 1
Required:
Prepare the journal entries that Smart Solutions Incorporated would record for the above transactions. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Received interest on the notes. (No interest has been recorded since December 31.)
Received principal on the notes.
Journal entry worksheet
1
Loaned $70,000 to employees of the company and received back one-year, 10
percent notes. Record the transaction.
2
Note: Enter debits before credits.
<
Date
July 01, 2020
<
Journal entry worksheet
1
Date
Note: Enter debits before credits.
December 31, 2020
Record entry
1
Accrued interest on the notes. Record the transaction.
2
Journal entry worksheet
2…
Problem 6-6 (AICPA Adapted)
On January 1, 2021, Remarkable Company had the following
account balances:
Note receivable from sale of an idle building
Note receivable from an officer
7,500,000
2,000,000
The P7,500,000 note receivable is dated May 1, 2020, bears
interest at 9% and represents the balance of the consideration
received from the sale of an idle building to Solid Company.
Principal payments of P2,500,000 plus interest are due
annually beginning May 1, 2021. Solid Company made the
first principal and interest payment on May 1, 2021.
The P2,000,000 note receivable is dated December 31, 2018,
bears interest at 8% and is due on December 31, 2023.
The note is due from the president of Remarkable Company.
Interest is payable annually on December 31 and all interest
payments were made through December 31, 2021.
On July 1, 2021, Remarkable Company sold a parcel of land
to Boom Company for P4,000,000 under an installment sale
contract.
Boom Company made a P1,200,000 cash down payment…
Chapter 13 Solutions
INTERMEDIATE ACCOUNTING RMU 9TH EDITION
Ch. 13 - What are the essential characteristics of...Ch. 13 - Prob. 13.2QCh. 13 - Bronson Distributors owes a supplier 100,000 on...Ch. 13 - Bank loans often are arranged under existing lines...Ch. 13 - Prob. 13.5QCh. 13 - Prob. 13.6QCh. 13 - Salaries of 5,000 have been earned by employees by...Ch. 13 - Prob. 13.8QCh. 13 - Prob. 13.9QCh. 13 - Prob. 13.10Q
Ch. 13 - Prob. 13.11QCh. 13 - Prob. 13.12QCh. 13 - Long-term obligations usually are reclassified and...Ch. 13 - How do IFRS and U.S. GAAP differ with respect to...Ch. 13 - Prob. 13.15QCh. 13 - Prob. 13.16QCh. 13 - Prob. 13.17QCh. 13 - Prob. 13.18QCh. 13 - Suppose the analysis of a loss contingency...Ch. 13 - Prob. 13.20QCh. 13 - Distinguish between the accounting treatment of a...Ch. 13 - At December 31, the end of the reporting period,...Ch. 13 - After the end of the reporting period, a...Ch. 13 - Prob. 13.24QCh. 13 - Prob. 13.25QCh. 13 - Prob. 13.26QCh. 13 - Prob. 13.27QCh. 13 - Prob. 13.28QCh. 13 - Bank loan; accrued interest LO132 On October 1,...Ch. 13 - Non-interest-bearing note; accrued interest LO132...Ch. 13 - Determining accrued interest LO132 On July1,...Ch. 13 - Commercial paper LO132 Branch Corporation issued...Ch. 13 - Non-interest-bearing note; effective interest rate...Ch. 13 - Prob. 13.6BECh. 13 - Advance collection LO133 In Lizzie Shoes...Ch. 13 - Sales tax LO133 DuringDecember, Rainey Equipment...Ch. 13 - Classifying debt LO134 Consider the following...Ch. 13 - Prob. 13.10BECh. 13 - Prob. 13.11BECh. 13 - Prob. 13.12BECh. 13 - Prob. 13.13BECh. 13 - Contingency LO135, LO136 Skill Hardware is the...Ch. 13 - Contingency LO135, LO136 Bell International can...Ch. 13 - Prob. 13.16BECh. 13 - Prob. 13.17BECh. 13 - Unasserted assessment LO135, LO136 At March 13,...Ch. 13 - Bank loan; accrued interest LO132 On November 1,...Ch. 13 - Determining accrued interest in various situations...Ch. 13 - Short-term notes LO132 The following selected...Ch. 13 - Paid future absences LO133 JWS Transport Companys...Ch. 13 - Paid future absences LO133 On January 1, 2018,...Ch. 13 - Prob. 13.6ECh. 13 - Customer deposits LO133 Diversified...Ch. 13 - Prob. 13.8ECh. 13 - Prob. 13.9ECh. 13 - FASB codification research LO133, LO134, LO135...Ch. 13 - Current noncurrent classification of debt; Sprint...Ch. 13 - Prob. 13.12ECh. 13 - Current noncurrent classification of debt LO131,...Ch. 13 - Prob. 13.14ECh. 13 - Warranties LO135, LO136 Cupola Awning Corporation...Ch. 13 - Extended warranties LO135, LO136 Carnes...Ch. 13 - Prob. 13.17ECh. 13 - Impairment of accounts receivable LO135, LO136...Ch. 13 - Prob. 13.19ECh. 13 - Various transactions involving contingencies ...Ch. 13 - Prob. 13.21ECh. 13 - Prob. 13.22ECh. 13 - Disclosures of liabilities Indicate (by letter)...Ch. 13 - Warranty expense; change in estimate LO135, LO136...Ch. 13 - Change in accounting estimate LO133 The...Ch. 13 - Contingency; Dow Chemical Company disclosure ...Ch. 13 - Payroll-related liabilities Appendix Lee...Ch. 13 - Prob. 13.1PCh. 13 - Prob. 13.2PCh. 13 - Current noncurrent classification of debt LO131,...Ch. 13 - Various liabilities LO131 through LO134 The...Ch. 13 - Bonus compensation; algebra LO133 Sometimes...Ch. 13 - Various contingencies LO135, LO136 Eastern...Ch. 13 - Prob. 13.7PCh. 13 - Expected cash flow approach; product recall LO136...Ch. 13 - Subsequent events LO136 Lincoln Chemicals became...Ch. 13 - Subsequent events; classification of debt; loss...Ch. 13 - Prob. 13.11PCh. 13 - Various liabilities; balance sheet classification;...Ch. 13 - Payroll-related liabilities Appendix Alamar...Ch. 13 - Prob. 13.1BYPCh. 13 - Prob. 13.3BYPCh. 13 - Prob. 13.4BYPCh. 13 - Prob. 13.5BYPCh. 13 - Prob. 13.7BYPCh. 13 - Prob. 13.8BYPCh. 13 - Judgment Case 139 Loss contingency and full...Ch. 13 - Prob. 13.10BYPCh. 13 - Prob. 13.12BYPCh. 13 - Prob. 13.13BYPCh. 13 - Prob. 13.14BYPCh. 13 - Prob. 13.15BYPCh. 13 - Prob. 13.16BYPCh. 13 - Prob. 13.18BYPCh. 13 - Real World Case 1319 Contingencies LO135 Real...Ch. 13 - Real World Case 1320 Contingencies and Subsequent...Ch. 13 - Prob. 1CCTCCh. 13 - Prob. 1CCIFRS
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