INTERNATIONAL ACCOUNTING
5th Edition
ISBN: 9781307458879
Author: Doupnik
Publisher: MCG/CREATE
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Chapter 5, Problem 30EP
To determine
State the revenue recorded by Company L for the customer’s purchases using card during December and compute the value of unearned revenue liability connected to the card as of Dcember31, Year 1.
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On May 25, Al Mujaaz Company made a credit sale of OMR 220,000 to Al Zahir Company and received a note for four months with 8% interest from him in settlement of account receivables. Al Mujaaz Company closes their accounts every year on July 31st and calculated accrued interest on the note of May 25. Al Mujaaz Company received Notification from Al Zahir that he was unable to honour his note on the due date and it is expected that AlZahir will pay at a later date but On 1st OctoberAl Zahir has paid full amount on note, On May 25, Another note for 60 days 11.5% interest has been received for OMR 112,000 from Al.Zubair Company has been honoured on the due date.
Prepare Necessary Journal entries for the above Transactions
On May 25, Al Mathir Company made a credit sale of OMR 320,000 to Wasan Company and received a note for 100 days with 9% interest from him in settlement of account receivables. Al Mathir Company closes their accounts every year on July 31st and calculated accrued interest on the note of May 25th.Al Mathir Company received Notification from Wasan that he was unable to honour his note on the due date and it is expected that Wasan will pay at a later date but on 1stOctoberWasan has paid full amount on note. On May 25 another note for 3 months with 17.5% interest has been received for OMR 122,000 from Al Zubair Company has been honoured on the due date.
Prepare Necessary Journal entries for the following Transactions
On June 1,2024, Puritan Performance Cell Phones sold $23,000 of merchandise to Avery Trucking Company on account. Avery fell on hard times and on July 15 paid only $4,000 of the account receivable. After repeated attempts to collect, Puritan Performance finally wrote off its accounts receivable from Avery on September 5. Six months later, March 5, 2025, Puritan Performance received Avery's check for $19,000 with a note apologizing for the late payment.
Requirement 1. Journalize the transactions for Puritan Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.)
June 1: Puritan Performance Cell Phones sold $23,000 of merchandise to Avery Trucking Company
on account. Ignore Cost of Goods Sold.
Chapter 5 Solutions
INTERNATIONAL ACCOUNTING
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - 3. What is a constructive obligation?
Ch. 5 - Prob. 4QCh. 5 - Prob. 5QCh. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 10Q
Ch. 5 - 11. What are the rules related to the recognition...Ch. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - What are the five steps that entities take to...Ch. 5 - Prob. 15QCh. 5 - Prob. 16QCh. 5 - Prob. 17QCh. 5 - What is breakage revenue?Ch. 5 - What are the three categories of financial assets...Ch. 5 - Prob. 20QCh. 5 - Prob. 21QCh. 5 - What is the primary difference between how IFRS...Ch. 5 - Prob. 23QCh. 5 - Prob. 24QCh. 5 - Prob. 25QCh. 5 - Prob. 26QCh. 5 - Prob. 27QCh. 5 - A cement manufacturer has cement plants around the...Ch. 5 - Prob. 29QCh. 5 - How much revenue must be generated by a companys...Ch. 5 - How is a major customer defined?Ch. 5 - 1. Halifax Corporation has a December 31 fiscal...Ch. 5 - 2. Bull Arm Company has the following items at...Ch. 5 - 3. Melbourne Inc. became involved in a tax dispute...Ch. 5 - Prob. 4EPCh. 5 - Prob. 5EPCh. 5 - Prob. 6EPCh. 5 - Prob. 7EPCh. 5 - 8. Sandoval Company operates in a country in which...Ch. 5 - Which of the following is a criterion that must be...Ch. 5 - Prob. 10EPCh. 5 - Siam Financial Corp. (SFC) actively trades bonds...Ch. 5 - A 3 million loan paying annual interest at a 5...Ch. 5 - Monterrey Properties enters into a 3-year lease...Ch. 5 - 10. An entity must adjust its financial statements...Ch. 5 - Prob. 15EPCh. 5 - Prob. 16EPCh. 5 - Prob. 17EPCh. 5 - Prob. 18EPCh. 5 - Prob. 19EPCh. 5 - Prob. 20EPCh. 5 - Prob. 21EPCh. 5 - Prob. 22EPCh. 5 - Prob. 23EPCh. 5 - Prob. 24EPCh. 5 - Prob. 25EPCh. 5 - Prob. 26EPCh. 5 - Prob. 27EPCh. 5 - Prob. 28EPCh. 5 - Prob. 29EPCh. 5 - Prob. 30EPCh. 5 - Prob. 33EPCh. 5 - Prob. 34EPCh. 5 - Prob. 35EPCh. 5 - Prob. 36EPCh. 5 - Prob. 37EPCh. 5 - Prob. 38EPCh. 5 - On January 1, Year 1, Autonomous Systems Ltd....Ch. 5 - Prob. 40EPCh. 5 - Prob. 41EPCh. 5 - Prob. 42EP
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