FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![Required information
[The following information applies to the questions displayed below.]
Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $3,800 per machine.
HEC usually sells these machines to hospitals at a price of $7,120. HEC also separately sells 12 months of training and
repair services for fMRI machines for $1,780. HEC is paid $7,120 cash on November 30 for the sale of an fMRI machine
delivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repair
service.
2. Prepare journal entries would HEC record on November 30 and December 1? (Assume HEC uses a perpetual inventory system for
recording the cost of goods sold.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first
account field.)
View transaction list
1 Record the receipt of cash.
2 Record the sales revenue for the equipment (MRI
machine).
3 Record the cost of goods sold.
Note :
journal entry has been entered
Record entry
Clear entry
IXI
t
Credit
View general journal
>](https://content.bartleby.com/qna-images/question/a7a72268-b6eb-45ab-83f5-d6f769857a96/eb631cf6-dd0e-4b66-8226-e32e24d6b3ef/avcbhw_processed.jpeg)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $3,800 per machine.
HEC usually sells these machines to hospitals at a price of $7,120. HEC also separately sells 12 months of training and
repair services for fMRI machines for $1,780. HEC is paid $7,120 cash on November 30 for the sale of an fMRI machine
delivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repair
service.
2. Prepare journal entries would HEC record on November 30 and December 1? (Assume HEC uses a perpetual inventory system for
recording the cost of goods sold.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first
account field.)
View transaction list
1 Record the receipt of cash.
2 Record the sales revenue for the equipment (MRI
machine).
3 Record the cost of goods sold.
Note :
journal entry has been entered
Record entry
Clear entry
IXI
t
Credit
View general journal
>
![Required information
[The following information applies to the questions displayed below.]
Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $3,800 per machine.
HEC usually sells these machines to hospitals at a price of $7,120. HEC also separately sells 12 months of training and
repair services for fMRI machines for $1,780. HEC is paid $7,120 cash on November 30 for the sale of an fMRI machine
delivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repair
service.
Required:
1. For the machine sold at its regular price, but with one year of "free" training and repair service, determine the dollar amount of
revenue earned from the equipment sale versus the revenue earned from the training and repair services.
Equipment
Service
Allocated
Transaction
Price](https://content.bartleby.com/qna-images/question/a7a72268-b6eb-45ab-83f5-d6f769857a96/eb631cf6-dd0e-4b66-8226-e32e24d6b3ef/3j3vd3_processed.jpeg)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $3,800 per machine.
HEC usually sells these machines to hospitals at a price of $7,120. HEC also separately sells 12 months of training and
repair services for fMRI machines for $1,780. HEC is paid $7,120 cash on November 30 for the sale of an fMRI machine
delivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repair
service.
Required:
1. For the machine sold at its regular price, but with one year of "free" training and repair service, determine the dollar amount of
revenue earned from the equipment sale versus the revenue earned from the training and repair services.
Equipment
Service
Allocated
Transaction
Price
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- did not fully awnser questionarrow_forwardWhat is the formula used for the questions without using excel?arrow_forwardZina Manufacturing Company started and completed Job 501 in December with the following Job Cost Sheet and transferred it to the warehouse. Direct Materials Date Dec 17 Dec 30 Total Direct Labor Amount Date Amount $2,000 Dec 20 $4,000 8,000 Dec 30 3,800 Total Job Cost Sheet - Job No. 501 Total Cost The journal entry to record the transaction is A) WIP Inventory FG Inventory B) Cost of Goods Sold WIP Inventory C) FG Inventory WIP Inventory D) FG Inventory WIP Inventory Debit Credit 35,800 17,800 17,800 Manufacturing Overhead Date Amount Dec 24 $10,000 Dec 30 8,000 Total 35,800 35,800 17,800 17,800 35,800arrow_forward
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