Precision Company is a public company manufacturing equipment. Precision's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $ 140,000 to $ 1,200,000 and are quoted inclusive of installation. The installation process does NOT involve changes to the features of the equipment to perform specifications. So installation can be performed by other vendors. Precision had the following transactions with Rose Inc. on June 20, 2020. • Rose signed a contract to purchase equipment from Precision for a price of $200,000 (installation included). Using market data, Rose determines installation service is estimated to have a fair value of $ 20,000. The cost of the equipment is $ 78,000 and the labor cost of the installation is $1,000. • The price of $200,000 includes a warranty guarantee that the equipment is free from any defects. The term of the assurance warranty is two years, with an estimated cost of $3,000. • Precision provides an extended warranty for three years beyond the two-year period. The extended warranty is sold separately. The price of the extended warranty for the equipment sold to Rose is $12,000, with an estimated cost of $6,000. Rose purchased the extended warranty. • Rose paid Precision the $ 200,000 for the equipment and $12, 000 for the extended warranty.

Furtastic manufactures imitation fur garments. On June 1, 2024, Furtastic made a sale to Willett's Department Store under terms that require Willett to pay $220,000 to Furtastic on June 30, 2024. In a separate transaction on June 15, 2024, Furtastic purchased brand advertising services from Willett for $26,000. The fair value of those advertising services is $12,000. Furtastic expects that 3% of all sales will prove uncollectible. Required: 1. Prepare the journal entry to record Furtastic's sale on June 1, 2024. 2. Prepare the journal entry to record Furtastic's purchase of advertising services from Willett on June 15, 2024. Assume all of the advertising services are delivered on June 15, 2024. 3. Prepare the journal entry to record Furtastic's receipt of $220,000 from Willett on June 30, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet

Rhone-Metro Industries manufactures equipment that is sold or leased. On December 31, 2024, Rhone-Metro leased equipment to Western Soya Company for a noncancelable stated lease term of four years ending December 31, 2028, at which time possession of the leased asset will revert back to Rhone-Metro. ● ● ● The equipment cost $390,000 to manufacture and has an expected useful life of six years. Its normal sales price is $445,205. The expected residual value of $26,000 on December 31, 2028, is not guaranteed. The first payment was made on December 31, 2024. Western Soya's incremental borrowing rate is 10%. Western Soya knows the interest rate implicit in the lease payments is 9%. Both companies use straight-line depreciation or amortization. [Hint: A lease term ends for accounting purposes when an option becomes exercisable if it's expected to be exercised (i.e., a BPO).] Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of…

Canseco Company has been having difficulty obtaining key raw materials for its manufacturing process. The company, therefore, signed a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2021, at an agreed price of $100,000.  On December 31, 2021, the raw material had declined in price to $85,000.  Required  What entry, if any, would you make on December 31, 2021, to recognize these facts?

3....new. //// Metlock Inc. was incorporated in 2019 to operate as a computer software service firm, with an accounting fiscal year ending August 31. Metlock’s primary product is a sophisticated online inventory-control system; its customers pay a fixed fee plus a usage charge for using the system.Metlock has leased a large, Alpha-3 computer system from the manufacturer. The lease calls for a monthly rental of $44,000 for the 144 months (12 years) of the lease term. The estimated useful life of the computer is 15 years.All rentals are payable on the first day of the month beginning with August 1, 2020, the date the computer was installed and the lease agreement was signed. The lease is non-cancelable for its 12-year term, and it is secured only by the manufacturer’s chattel lien on the Alpha-3 system.This lease is to be accounted for as a finance lease by Metlock, and it will be amortized by the straight-line method. Borrowed funds for this type of transaction would cost…

14.Kandon Enterprises, Inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and, on November 15, 2021, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2022. At December 31, 2021, the component was considered held for sale.  On December 31, 2021, the company’s fiscal year-end, the book value of the assets of the horse division was $372,000. On that date, the fair value of the assets, less costs to sell, was $320,000. The before-tax loss from operations of the division for the year was $260,000. The company’s effective tax rate is 25%. The after-tax income from continuing operations for 2021 was $520,000. Required: Prepare a partial income statement for 2021 beginning with income from continuing operations. Ignore EPS disclosures. Prepare a partial…