60. The note is due April 1, 2021. Concord would normally have to pay interest at a rate of 99 alership has an incremental borrowing rate of 8%. of $43,040. It is acquired in exchange for a computer system that Concord carries in invento $32,280 and is normally sold by Concord for $40,888. Concord uses a perpetual inventory sy of $37,660. It is acquired in exchange for 900 shares of common stock in Concord Corporati

60. The note is due April 1, 2021. Concord would normally have to pay interest at a rate of 99 alership has an incremental borrowing rate of 8%. of $43,040. It is acquired in exchange for a computer system that Concord carries in invento $32,280 and is normally sold by Concord for $40,888. Concord uses a perpetual inventory sy of $37,660. It is acquired in exchange for 900 shares of common stock in Concord Corporati

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...

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Sunland Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. 1. Truck #1 has a list price of $31,350 and is acquired for a cash payment of $29,051. 2. Truck #2 has a list price of $33,440 and is acquired for a down payment of $4,180 cash and a zero-interest-bearing note with a face amount of $29,260. The note is due April 1, 2021. Sunland would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has an incremental borrowing rate of 8%. 3. Truck #3 has a list price of $33,440. It is acquired in exchange for a computer system that Sunland carries in inventory. The computer system cost $25,080 and is normally sold by Sunland for $31,768. Sunland uses a perpetual inventory system. 4. Truck #4 has a list price of $29,260. It is acquired in exchange for 1,030 shares of common stock in…
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Waterway Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. Truck #1 has a list price of $47,550 and is acquired for a cash payment of $44,063. 2. 3. 4. Truck #2 has a list price of $50,720 and is acquired for a down payment of $6,340 cash and a zero-interest-bearing note with a face amount of $44,380. The note is due April 1, 2026. Waterway would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. Truck #3 has a list price of $50,720. It is acquired in exchange for a computer system that Waterway carries in inventory. The computer system cost $38,040 and is normally sold by Waterway for $48,184. Waterway uses a perpetual inventory system. Truck #4 has a list price of $15,080. It is acquired in exchange for 1,080 shares of common stock in Waterway Corporation. The…
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Blossom Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. 2. 3. 4. 1. Prepare the appropriate journal entries for the above transactions for Blossom Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) 2. Truck #1 has a list price of $54,750 and is acquired for a cash payment of $50,735. Truck #2 has a list price of $58,400 and is acquired for a down payment of $7,300 cash and a zero-interest-bearing note with a face amount of $51,100. The note is due April 1, 2026. Blossom would normally have to pay interest at a rate of…
On June 1, 2020 Comfort Creamery Corp. purchased 9,000 wooden barrels on account for $900,000 (purchase price of $100/barrel). The terms of the purchase were 2/10, n/30. Comfort Creamery Corp. accounts for such purchases using the net method. Required: 1. Prepare the journal entry to record the purchase of 9,000 wooden barrels. 2. Comfort Creamery Corp. paid for the barrels on June 17, 2020. Prepare the journal entry to record the payment for the 9,000 wooden barrels.
On October 9, 2020, Steven Company purchased $4,500 of product on account from Bryant Company on with credit terms of 2/15 n/30. The product cost Bryant Company $3,750. The freight terms were F.O.B. shipping point, the cost was $125 and the freight was paid in cash to ABC Trucking Company on Oct 12, 2020. On October 15, Bryant Company purchased $2,000 of product from Mitchell Company, with credit terms of 3/10, n/60. The product cost Mitchell Company $1,200. The freight terms were F.O.B. destination. the cost was $75 and the freight was paid in cash to ABC Trucking Company on October 16. On October 17, Steven Company paid for the purchase made on October 9. On October 30, Bryant Company paid for the purchase made on October 15. Prepare the journal entries for Steven, Bryant, and Mitchell Companies. Calculate the gross margin on Bryant’s sale to Steven Company and on Mitchell’s sale to Bryant Company.
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Whispering Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at a cost of $967,800. At December 31, 2025, the raw materials to be purchased have a market value of $917,200. Prepare any necessary December 31, 2025, entry. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Dec. 31 Estimated Liability on Purchase Commitments Debit 50600 Credit 50600
UMPI Corporation purchased conveyor equipment with a list price of $15,000. Presented below are three independent cases related to the equipment. (Round to the nearest dollar.) Instructions: Prepare the general journal entries required to record the acquisition and payment in each of the independent cases below. 6.1 UMPI paid cash for the equipment 8 days after the purchase. The vendor’s credit terms are 2/10, n/30. Assume that equipment purchases are initially recorded gross. 6.2 UMPI traded in equipment with a book value of $2,000 (initial cost $8,000), and paid $8,500 in cash. The old equipment could have been sold for $1,400 at the date of trade. (The exchange did have commercial substance.) 6.3 UMPI signed an interest-bearing note for the equipment on the date of purchase. The note was due in one year and was paid on time.