On May 1, 2018, Varga Tech Services signed a $126,000 consulting contract with Shaffer Holdings. The contract requires Varga to provide computer technology support services whenever requested over the period from May 1, 2018, to April 30, 2019, with Shaffer paying the entire $126,000 on May 1, 2018.
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- On May 1, 2021,Varga Tech Services signed a $6,000 consulting contract with Shaffer Holdings. The contract requires Varga to provide computer technology support services whenever requested over the period fromMay 1, 2021, to April 30, 2022, with Shaffer paying the entire $6,000 on May 1, 2021. How much revenue should Varga recognize in 2021?On October 10, 2020, Flounder Co. entered into a contract with Belisle Inc. to transfer Flounder’s specialty products (sales value of $9,200, cost of $6,500) on December 15, 2020. Belisle agrees to make a payment of $5,400 upon delivery and signs a promissory note to pay the remaining balance on January 15, 2021. What entries does Flounder make in 2020 on this contract?On May 1, 2025, Sunland Company enters into a contract to transfer a product to Charlie Company on September 30, 2025. It is agreed that Charlie will pay the full price of $26,420 in advance on June 15, 2025. Charlie pays on June 15, 2025, and Sunland delivers the product on September 30, 2025, Prepare the journal entries required for Sunland in 2025. (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 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem) Date May 1,2025 June 15, 2025 Sep 30, 2025 Account Titles and Explanation No Entry No Entry Cath Debit 0 26420 26420 Credit 26420 26420
- On May 1, 2025, Sandhill Company enters into a contract to transfer a product to Anthony Company on September 30, 2025. It is agreed that Anthony will pay the full price of $24,560 in advance on June 15, 2025. Anthony pays on June 15, 2025, and Sandhill delivers the product on September 30, 2025. Prepare the journal entries required for Sandhill in 2025. (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 11 Account Titles and Explanation Debit CreditOn October 10, 2020, Executor Co. entered into a contract with Belisle Inc. to transfer Executor's specialty products (sales value of $10,000, cost of $6,500) on December 15, 2020. Belisle agrees to make a payment of $5,000 upon delivery and signs a promissory note to pay the remaining balance on January 15, 2021. What entries does Executor make in 2020 on this contract? Ignore time value of money considerations.Coronado Industries sells major household appliance service contracts for cash. The service contracts are for a one ycar, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $965000 at December 31, 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $243000 at December 31, 2019. Outstanding service contracts at December 31, 2019 expire as follows: During 2020 During 2021 During 2022 $198000 $318000 $142000 What amount should be reported as unearned service contract revenues in Coronado's December 31, 2019 balance sheet? $460000. O $658000. O $722000. O $516000.
- Lowery Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of P600,000 at 31 December 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of P150,000 at 31 December 2019. Outstanding service contracts at 31 December 2019 expire as follows: During 2020 During 2021 During 2022 P125,000 P200,000 P90,000 What amount should be reported as unearned service contract revenues in Lowery's 31 December 2019 statement of financial position?Machinery Corp transfers the machine, and collects the total contract price on February 1, 2020 The maintenance services start on that date. Required Analyze the five steps of model of revenue recognitionOn April 30, 2019 the Triple Safety Agency received an advance payment of P540,000 for a one-year security contract covering the period June 01 to May 31, 2020. The Company is using the calendar year reporting period. How much is the service income to be reported on December 31, 2019?
- On December 1, 2020, Shyam Construction Co. entered into a contract with a customer for the construction of a building. The contract prices are $44,00,000, which is to be billed to the customers periodically based on Shyam's progress on the construction. The estimated total contract cost is $28,00,000. The actual costs incurred in 2020 amounts to $12,00,000. Requirement: The revenue to be recognized in 2020On July 1, 2021, Concord Inc. entered into a contract to deliver one of its specialty machines to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $5,400 in advance on July 15, 2021. Kickapoo pays Concord on July 15, 2021, and Concord delivers the machine (with cost of $2,100) on July 31, 2021. Prepare the journal entry on July 1, 2021, for Concord. (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 0 for the amounts.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Prepare the journal entry on July 15, 2021, for Concord. (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…Lux Hotels Inc. has signed a service outsourcing contract with Deluxe Rooms Inc. for 3 million, which wasreceived in cash at contract inception. Under the agreement. Deluxe Rooms is obligated to clean and prepare over 5,000 hotel rooms managed by Lux Hotel on a daily basis from August 1, 2019 to July 31, 2020. When should Lux Hotels recognizes revenue? a. No transaction c. Point in timeb. No revenue d. Over time The amount of sales revenue on August 1, 2019? a. Zero c. P1,500,000b. P1,250,000 d. P3,000,000 The sales revenue on December 31, 2019 amounted to: a. Zero c. P1,500,000b. P1,250,000 d. P3,000,000