Careful Company sells goods that cost P600,000 to a customer for P800,000 on December 20, 2021. The sales price includes an installation fee, which is valued at P80,000. The fair value of the goods is P740,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. *How many performance obligations are there in the contract? *How much is the revenue to be recognized in 2021 and 2022?
Q: Dallas Company uses a job order costing system. Th company's executives estimated that direct labor…
A: Overhead cost are indirect operating cost and are not directly related to manufacturing but they…
Q: The company has a 10% interest bearing, promissory note of 50,000, payable after 5 years. Sales…
A: The financial leverage is the ratio that helps in measuring the dependency of the entity on debt…
Q: Provide legal basis to support your claim (if there is wrong in the schedule 4)
A: Since you have asked various questions but as our protocol is to answer to the one question only…
Q: Before Action $1,269,000 $ equity $232,000 657,000 380,000 1,037,000 $1269,000 300,000 $ $ After…
A: Introduction Cash Dividend: A cash dividend is a payment made from the firm's current income or…
Q: Target
A:
Q: A stock has a required return of 7%, the risk-free rate is 2.5%, and the market risk premium is 3%.…
A: Required rate of return as per CAPM :— Expected Return = Rf + (Rm - Rf) beta of the…
Q: List all special costs, semi-variable and direct variable costs of the company in 2021. Produce the…
A: 1. All special costs, semi-variable and direct variable costs Type of Cost Nature Marketing…
Q: Lindstrom Company produces two fountain pen models. Information about its products follows: Product…
A: Lets understand the basics. Contribution margin ratio is a ratio which shows the contribution…
Q: Kit Company leased equipment at an annual rental of P45,000 payable in advance for five years.…
A:
Q: Walmart sells a bike that cost $100 to a customer for $250 cash. Using a perpetual inventory system,…
A: Under a traditional periodic Inventory System, the inventories are recorded by physical counting on…
Q: How much of the above payments are deductible from gross income?
A: Gross income is the income which has been earned by the company when the same has been computed as…
Q: ko Babagsak Company has 10,000 P50-par convertible preference shares which were originally issued at…
A: Explanation of Concept reference Shares are the shares which have been issued with preference right…
Q: 38. On June 1, 2020, Golden Warriors Corporation declared a share capital dividend entitling its…
A: Dividends are the part or share of profits which is being distributed to the shareholders. Share…
Q: . If the company uses absorption costing, compute gross profit assuming (a) 12,800 units are…
A: In absorption costing the fixed overhead costs is allocated to all units produced for an accounting…
Q: The rental cost of renting a machine that is $20,000 per year plus $0.70 per machine hour of use…
A: Cost is the amount of money incurred on the making or selling of the goods or services. The cost, in…
Q: record year end cost of goods) ok and Media ccounts
A: In consignment sales, the consignee holds the stock and makes sales on behalf of the consignor to…
Q: 2-36. COST OF GOODS PURCHASED, COST OF GOODS SOLD, AND INCOME STATEMENT. The following data are for…
A: Cost of Goods Purchase :- Cost of Goods Purchase is Net purchase plus Freight In. Purchase - PR -…
Q: Stock-X is evaluating two mutually exclusive projects. Project A has a net investment of $48,000 and…
A: Net present value is difference between present value of cash inflows and present value of cash…
Q: Amortization of bond premium decreases interest expense, while amortization of discount increases…
A: The bonds are the financial instruments for the business which are issued by business to raise the…
Q: Consider the following information for a period of years: Long-term government bonds Long-term…
A: Introduction: A bond is a fixed-income investment instrument that represents an investor's loan to a…
Q: ABC Corporation reported a profit of P7,500,000 as of December 31, 2022. The company has the…
A: EPS is the earning share hares and is calculated by dividing the net income available to the…
Q: Ziegler Corporation purchased 25,000 ordinary shares of Sherman Corporation for P40 per share on…
A: When company invest in other company and purchases the shares of company than dividend received…
Q: Xanax Corp has the following budgeted data: Cash, beginning, is 100,000; Cash, ending, is 80,000.…
A: Cash Flow statement :— Cash flow statement is a statement that provides the aggregate data of cash…
Q: Financial Accounting Project: 1. The owner, Josef Miguel, invested Php250,000 cash in the business.…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: 1. A computer table sells for $198.50 and costs $158.70. Find the markup. Find the rate of markup…
A: Markup and Markup rate: Difference between the selling price of the product and the cost of the…
Q: b) Using the information provided, prepare an income statement for 2001 similar to Exhibit 16.2…
A: Income Statements have various formats depending on the type of business a company is reporting. It…
Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. HINT [See…
A: Present value is the worth of a future sum of money at the present date. The present value of…
Q: MM Co. had 100,000 shares of ordinary share issued and outstanding at January 1, 2021. During 2021,…
A: Shares are split by 2-for-1. Each share is converted into 2. Total shares outstanding before stock…
Q: At the end of 2020, Monty Corp. has accounts receivable of $2.95 million and an allowance for…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…
Q: The shareholders' equity section of the statement of financial position of ABC Co. contains the…
A:
Q: The December 31, 2021, statement of financial position of Bordeaux Corporation includes the…
A: Bonds payable is a form of liability for the business, on which regular interest payments needs to…
Q: How much dividends will be received by the preference shares holders?
A: You have asked two questions kindly resubmit another question as our guideline is to answer one…
Q: Eddy Co. is indebted to Cole under a P400,000, 12%, three-year note dated December 31, 2019. Because…
A: Indebted Amount: P400,000 Accrued Interest: P48,000 Fair Value of land: P360,000 Acquisition cost of…
Q: During 2018, Concord Tools Ltd., a Canadian public company, purchased a building site for its…
A: As per GAAP, R&D costs are written-off in the same period irrespective of future benefit.
Q: FPJ Inc. received subscription for 5,250 Preference Shares at P 10 above par value of P 200 per…
A: Common shares and Preference shares are two type of shares being issued by the company for raising…
Q: Nakashima Gallery had the following petty cash transactions in February of the current year.…
A: Petty cash is the small amount of cash which is kept with the cashier of an entity for the…
Q: A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She…
A:
Q: NEED ASAP. Solve correctly and show your computations. Ada, Bea, Cindy and Diane are partners,…
A: Lets understand the basics. Partnership is an agreement between two or more person who works…
Q: What is the Break-Even sales (in units) given the following data:
A: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit)…
Q: Consider Derek's budget information: materials to be used totals $62,400; direct labor totals…
A: Cost of Goods Manufactured: The sum total of all manufacturing expenses for items that are completed…
Q: Three hours are required to produce one unit of product. The company budgeted a $14 per hour wage…
A: In accounting labor variance is an important type of cost variance. Labor variance focuses…
Q: The shareholders' equity section of the statement of financial position of ABC Co. contair…
A: The journal is prepared to record the transactions on regular basis as debit and credit different…
Q: Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments…
A: The cash flow statement is one of the financial statement of the business which keeps the track of…
Q: determine the direct labor cost budget for polishing for the year. $____
A: The company prepares a budgets based on the estimates to assess the future viability and growth of…
Q: In a government’s comprehensive annual financial report, proprietary fund types are included in…
A: Dear student, Since you have asked multiple questions we will answer only first question as per…
Q: From the following list indicate which of the liabilities that would be classified as current. O a.…
A: The balance sheet represents the financial position of the business with assets and liabilities on a…
Q: 3. Carol Stoy invested $1000 at 5% annually for three months. How much interest did she received? 4.…
A: • February month of a leap year consists of 29 days. • Under simple interest, Amount = Interest +…
Q: On December 31, 2020, Shenandoah Company had 100,000 shares of common stock outstanding and 40,000…
A: Basic earning per share is earning attributable to per common share. And diluted earning per share…
Q: Young Corporation had 50,000 ordinary shares of P100 par value and 25,000 preference shares of P100…
A: Preferred stock carry the dividend and that is to be paid regularly and if not paid than they will…
Q: The Litton Company has established standards as follows: Direct material Direct Labor Variable…
A: Labour Rate Variance :— It is the difference between standard labour cost & actual labour cost.…
Step by step
Solved in 4 steps
- On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial services. The contract sets the price at 12,000 per year, which is the normal standalone price that Mopps charges. On December 31, 2020, Mopps and Conklin agree to modify the contract. Mopps reduces the fee for the third year to 10,000, and Conklin agrees to a 4-year extension that will extend services through December 31, 2024, at a price of 15,000 per year. At the time that the contract is modified, Mopps is charging other customers 13,500 for the cleaning and janitorial service. Required: Should Mopps and Conklin treat the modification as a separate contract? If so how should Mopps account for the contract modification on December 31, 2020? Support your opinion by discussing the application to this case of the factors that need to be considered for determining the accounting for contract modifications.On October 1, 2019, Grahams WeedFeed Inc. signs a contract to maintain the grounds for BigData Corp. The contract ends on March 31, 2020, and has a monthly payment of 3,200. The contract does not include any stipulations for additional periods. On June 1, Grahams WeedFeed and BigData sign a new 12-month contract that is retroactive to April 1, 2020. The monthly fee for the new contract is 4,000 per month and is also retroactive to April 1, 2020. During April and May of 2020, while the new contract was being negotiated, Grahams Weed Feed continued to maintain the grounds, and BigData continued to pay 3,200 per month. BigData was satisfied with Grahams WeedFeeds performance, and the only issue during negotiations was the monthly fee. Required: Determine if a valid contract exists between Grahams WeedFeed and BigData during April and May 2020.
- Beautiful Company sold a set of washing machine and a dryer for a total contract price of P100,000 on December 15, 2021. The stand-alone selling prices of the washing machine and the dryer if sold separately are: 150,000 and 70,000, respectively. The washing machine was delivered on December 20, 2021 but the dryer was delivered only on January 5, 2022. *How many performance obligations are there in the contract? *How much is the revenue to be recognized in 2021? *How much is the revenue to be recognized in 2022?Zoro Company enters into a contract to sell Product A and Product B on July 1, 2020 for an upfront cash payment of P250,000. Product A will be delivered at the end of the year, and Product B will be delivered the following year. Zoro Company sells Product A for P80,000 and Product B for P240,000. 1. How many performance obligations are there in the contract? 2.what is the transaction price? 3.how much is revenue to be recognized in 2020? 4. how much is revenue to be recognized in 2021?Beautiful Company sold a set of washing machine and a dryer for a total contract price of P100,000 on December 15, 2021. The stand-alone selling prices of the washing machine and the dryer if sold separately are: 150,000 and 70,000, respectively. The washing machine was delivered on December 20, 2021 but the dryer was delivered only on January 5, 2022.1. How many performance obligations are there in the contract? 2. Use the same information in Number 5, how much is the revenue to be recognized in 2021? 3. Use the same information in Number 5, how much is the revenue to be recognized in 2022?
- Sarasota Company sells goods that cost $324,000 to Ricard Company for $442,800 on January 2, 2025. The sales price includes an installation fee, which has a stand-alone selling price of $43,200. The standalone selling price of the goods is $399,600. The installation is considered a separate performance obligation and is expected to take 6 months to complete (installation was completed on June 18, 2025). (a) How much revenue does Sarasota record on January 2, 2025? Revenue $A company entered into a contract with one of the customer to supply a sophisticated machinery for 200,000 on 01/07/2020. The Contract is coming with selling a machinery, 3 years maintenance and a one-year replacement guarantee. The stand-alone selling price of machinery is 120,000, the replacement guarantee costs 10,000 and free services expected to costs the company 20,000. As per the terms of sales, the customer may pay to the firm either on 01/01/2020- 200,000, 01/03/2020- 210,000 or 01/05/2020- 225,000. As per past experience there is high probability that the customer pays on 01/05/2020. You are required to write necessary treatments per IFRS 15. Also show the net effect of this transaction on the financial statements of the firm.A company enters into a contract to build a factory for a customer. The agreed price is P2M and the specified completion date is 31 October 2019. However, the contract provides that the company should receive an incentive payment of a further P250,000 if the factory is completed by 30 September 2019. Similarly, the price will be reduced by P250,000 if the factory The company estimates that there is a 15% probability that the factory will be completed by 30 September 2019, an 80% probability that it will be completed in October 2019 or November 2019 and a 5% probability that it will not be completed until after 30 November is not completed until after 30 November 2019. 2019. 20. What is the expected value of the transaction price for this contract? a. P2M C. P1.975M b. P2.125M d. P2.025M
- Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $40,000. The standalone selling price of the goods is $370,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete. Instructions a. Prepare the journal entries (if any) to record the sale on January 2, 2020. b. Shaw prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Shaw recognize related to its sale to Ricard?On May 10, 2025, Cullumber Co. enters into a contract to deliver a product to Oriole Inc. on June 15, 2025. Oriole agrees to pay the full contract price of $1,980 on July 15, 2025. The cost of the goods is $1,280. Cullumber delivers the product to Oriole on June 15, 2025, and receives payment on July 15, 2025. Prepare the journal entries for Cullumber related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit SICullumber Company sells goods on credit that cost $306,500 to Gary Company for $400,500 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $47,000. The standalone selling price of the goods is $353,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Prepare the journal entries (if any) to record the sale on January 2, 2025. (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.) Date Jan. 2, 2025 Account Titles and Explanation Debit Credit
