Unearned Service Revenue

Q: Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent…

A: The accrued liability refers to an expense incurred by a business but not yet paid. These are costs…

Q: Bebe Co. purchased equipment with an invoice price of 1,680,000 on March 5, 2021. How much would be…

A: Under the Tax Code, the amount of input tax on imported or purchased capital goods which will be…

Q: August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000 (P300…

A: As per IAS 15 Revenue recognition  When distinct goods or services are provided at standalone…

Q: On May 3, 2020, Ayayai Company consigned 90 freezers, costing $480 each, to Remmers Company. The…

A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…

Q: Regal Appliances consigned 60 television sets to Gal Company on January 1, 2020 for sale at P10,800…

A: Consignment sales are sales made by GAL on behalf of Regal.

Q: Bebe Co. purchased equipment costing P560,000 on March 5, 2021. How much would be the claimable…

A: Value Added Tax(VAT)-:It is a value-added tax, understood in a few countries as a product and…

Q: On May 1, 2020, Splish Company enters into a contract to transfer a product to Eric Company on…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Sim STar Ltd is a telecommunications provider. On 1 January 2020, the company entered into a…

A: Definition: Revenue recognition as per IFRS 115 revenue of contracts with customers mandates that if…

Q: ABC Company is preparing its financial statement for the year ended December 31, 2020. Accounts…

A: Note: In question it is written that accounts payable balance on 31st December 2019 but data is…

Q: On October 2, 2020, a company enters into a contract to transfer a product to the customer. It is…

A: COGS is starting inventory and purchases throughout the amount, minus your ending inventory. You may…

Q: During August 5, 2020, Hiro marketing sold an item worth P 500,000 for P 750,000. The required down…

A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…

Q: Ivanhoe Company sells goods on credit that cost $309,500 to Michael Company for $415,500 on January…

A: The revenue recognition principle under the accrual basis of accounting dictates that revenues…

Q: (a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account…

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: On July 1, 2024, Wildhorse Inc. enters into a contract with Kreighton Limited to supply $23,200 of…

A: According to the question given, we need to prepare the journal entries.Journal entries:Journal…

Q: a) × Your answer is incorrect. What portion of the total contract price would be recognized as…

A: As per the percentage-of-completion method, the percentage-of-completion is determined by dividing…

Q: On May 3, 2020, Flint Company consigned 80 freezers, costing $450 each, to Remmers Company. The cost…

A: Given information is: Goods consigned 80 freezers costing $450 each

Q: 1. During 2020, Bay Construction started a new construction job with a contract price of $750…

A: The objective of the question is to calculate the gross profit (or loss) for Bay Construction for…

Q: (a) Compute the inventory value of the units unsold in the hands of the consignee. Inventory value $…

A: Consignment sales involve a supplier (consignor) sending goods to a retailer (consignee) who sells…

Q: BC Company requires refundable advance payments with special orders for machinery constructed to…

A: Liabilities exists in the form of loans, accounts payable, mortgages, deferred revenues etc. Current…

Q: mounted to $890and was paid by Kingbird Company. On December 30, 2020, a report w hat35freezers had…

A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…

Q: TDC Company is preparing its financial statement for the year ended December 31, 2020. Accounts…

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

Q: Wildhorse Company sells on credits goods that cost $302,500 to Ricard Company for $415,500 on…

A: Gross profit is the amount of profit earned by the entity after deducting the cost of goods sold…

Q: Required: Prepare the journal entry required to record the sale on 1 August 20X1 and the receipt of…

A: As per IFRS, if the payments, regarding the sale of goods, are received in installments over the…

Q: Give the entry in January 2021, when the 63,000-pound shipment is received, assuming that the…

A: Unrealized Holding Gain or Loss = 63,000 * ($14 - $10) = $252,000

Q: On April 30, 2019 the Triple Safety Agency received an advance payment of P540,000 for a one-year…

A: Service income should be recognized as revenue when it is earned. Any advance received against which…

Q: During 2020, BIOT Company signed a non-cancelable contract with BTS Company to purchase 5,000 units…

A: Formula: Loss on purchase = contract signed price - decrease in price.

Q: At December 31, 2020, Shamrock, Inc., a manufacturer, has outstanding noncancelable purchase…

A: Purchase commitment is an agreement between buyer and seller to purchase a certain number of units…

Q: A company enters into a contract with a customer to build a structure for $565,000 (base pay). The…

A: transaction price for this contract Total transaction price = Fixed Consideration + Variable…

Q: CRS Co. is preparing its December 31, 2018 year – end financial statements. The following…

A: Liabilities can be defined as the company's obligations which need to be fulfilled in the future…

Q: On May 3, 2020, Sage Company consigned 80 freezers, costing $ 500 each, to Remmers Company. The cost…

A:

Q: Bonita Company signed a long-term noncancelable purchase commitment with a major supplier to…

A: A journal entry is used to record a business transaction in the company's accounting records.…

Q: Capricorn Company must determine the December 31, 2019 year-end accruals for advertising and rent…

A: Accrued rent from December 16 to December 31 = Monthly rent x 15/30 days = 4800 x 15/30 = P2400

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.