Determining the accounting periods in the cases

Assignment Help Accounting Basics
Reference no: EM131003942

1. Allocate revenue between different accounting periods in the following cases:

(a) Carolyn works as a freelance journalist. In November 20X1 she wrote an article for a magazine. The article appeared in the February 20X2 issue and she was paid in March 20X2. She draws up her financial statements to 31 December.

(b) Beker Industries manufactures and installs specialized telecommunications equipment at the premises of customers on behalf of Teleworks, a network operator. On 15 December 20X5 Teleworks placed an order with Beker Industries to manufacture and instal 210 specialized equipment items at the plant sites of its customers. Beker Industries had the items on inventory and shipped them to the customers' plants on 28 December 20X5. Beker Industries expects to instal the equipment by 5 January 20X6. Payment is due 14 days after installations of the goods.

(c) Standard International runs a small chain of bookshops. During the month of December 20X6 it sold books for an amount of €800000. It also sold €100 000 worth of gift certificates, 5 per cent of which were redeemed by customers for merchandise in the same month.

(d) Merseyside Ship-building Inc. receives an order to build a small cargo ship. The work starts on 1 July 20X2. At 31 December 20X2 the ship is 10 per cent complete, at 31 December 20X3 it is 80 per cent complete and the ship finally leaves the yard on 30 June 20X4. During this period Merseyside Ship-building received the following payments from the client: 31 July 20X2 €500 000; 1 January 20X3 €500 000; 30 June 20X3 €500 000; 31 December 20X3 €500 000; 30 June 20X4 €750 000; 1 January 20X5 €1 250 000 (final instalment).

(e) Wirral Electrical sells electric appliances wholesale. In November 20X1 it sold 20 fan heaters at €15 each to a retailer (Meols Stores) and in December a further 30 at €15 each to the same customer. In February 20X2 Meols Stores pays its outstanding account, subject to deduction of €30 for two defective heaters which it returned at the same time. In April 20X2 Meols Stores sends back a further heater, demanding a refund because it does not work. How would Wirral deal with this situation in its financial statements?

Reference no: EM131003942

Questions Cloud

Essay on customs afforded to noncommisioned officers : Write 1000 word essay on Customs and Curtesies afforded to noncommisioned Officers and Officers. Essay will be based on facts by Regulations/ Army Field Manuals
Understanding of basic nutrition concepts and applications : As a trainer, we must have a knowledgeable understanding of basic nutrition concepts and applications. Nutrition plays such a vital component in the success of your client whether they're striving for optimal performance, weight reduction, hypertr..
Who are the demanders and who are the suppliers : (C a s e S tudy: The Market for Professional Basketball) In what sense can we speak of a market for professional basketball? Who are the demanders and who are the suppliers? What are some examples of how changes in supply or demand conditions have..
Find the first two approximations of initial value problem : Use Euler's method with step h=0.1 to find the first two approximations (y1 and y2) of the initial value problem y' = 3+x-y, y(0) = 3.
Determining the accounting periods in the cases : Carolyn works as a freelance journalist. In November 20X1 she wrote an article for a magazine. The article appeared in the February 20X2 issue and she was paid in March 20X2. She draws up her financial statements to 31 December.
What you think is the strongest objection to singer position : What do you think is the strongest objection to Singer's position? How do you think Singer would reply to this objection? Do you think that the objection shows that Singer's theory is incorrect? Why or why not
How would you interpret landes story about mechanization : (The Evolution of the Firm) Get a library copy of The Wealth and Poverty of Nations, by David Landes, and read pages 207-210. How would you interpret Landes's story about mechanization using the ideas developed in this chapter?
Do you rent the space to the theatre company why or why not : A parish chapel is closed for economic reasons, but, technically, is still owned by the local church. To raise funds, the church has decided to "rent" out the chapel to local organizations for meetings, events or activities, since it is no longer..
Decorate a large house : They get an order to decorate a large house for €1200 plus materials. They buy €270 of materials on credit from the same builders' merchants.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Tom bat became a baseball enthusiast at a very early age

tom bat became a baseball enthusiast at a very early age. all of his baseball experience has provided him valuable

  Company has the following information income tax rate 40

company has the following information income tax rate 40 selling price per unit 7.50 variable cost per unit 2.50 total

  Royal carpet cleaning provided 90000 of services during

royal carpet cleaning provided 90000 of services during 2011 its first year of operations. all customers paid for the

  Rate of return for investment

Assume that at the beginning of the year, you purchase an investment for $5,500 that pays $110 annual income. Also assume the investment's value has increased to $6,400 by the end of the year. What is the rate of return for this investment?

  The following transactions relate to bondinvestments of

the following transactions relate to bondinvestments of livermore laboratories. the companys fiscal yearends on

  Compute the machines internal rate of return round discount

scalias cleaning service is investigating the purchase of an ultrasound machine for cleaning window blinds. the machine

  Briefly describe what this article says about how xbrl

Read the article at http://xbrl.us/learn/documents/betterreporting.pdf. Briefly describe what this article says about how XBRL has transformed financil

  In the following article christopher nobes suggests that

in the following article christopher nobes suggests that there are several reasons for the differences in accounting

  Employer payroll tax expense

Which of these is not included in an employer's payroll tax expense?

  Income tax was 303279 for the year income tax payable was

income tax was 303279 for the year. income tax payable was 26951 and 41632 at the beginning and end of the year.

  Based on the preceding information for davis company

Based on the preceding information for Davis Company answer the following questions. All questions pertain to the 2014 financial statements.

  What is the most that jill can pay for a bedspread

At a local Bed and Bath Superstore, the manager, Jill Roe, knows her customers will pay no more than $300 for a bedspread. Jill wants a 35% markup on selling price. What is the most that Jill can pay for a bedspread?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd