+1-415-670-9189
info@expertsmind.com
Prepare general journal entries to record the transactions
Course:- Financial Accounting
Reference No.:- EM13394




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Accounting

A company enters into a four year service contract at a contracted price of $12,000,000 on December 31, 20x0. At that time it was estimated that the total contract costs would amount to $10,000,000.

Data relating to the contract over its four years are as follows:

                                                             20x1         20x2           20x3          20x4

Costs incurred during year                      $1,800,000  $2,400,000  $4,425,000  $2,600,000

Expected costs to complete  contract       8,200,000   6,300,000    2,875,000        -0-

Required - 
 
For each the four years, Evaluate the amount of revenues and profit/loss that will be realized.

Question 2
 
Write the journal entries for each of the subsequent transactions: 
 
June 2    Sold 200 unit of product A605 to Chancellor Industries for $30 each. Terms 1/10, n40
 
June 4    Chancellor Industries returned 35 units. The units were restocked.
 
June 11  Received a cheque from Chancellor for payment of the June 2 sale.
 
June 14  Sold 500 units of product A505 to Newman Industries for $75 each. Terms 1/10, n40.
 
June 18  Newman Industries informs us that some of the items sold on June 14 are  damaged. They will keep the items but are requesting a credit note. After inspecting the units, a credit note of $5,000 is issued.

July 27    A cheque is received from Newman Industries.

Question 3

Simmons Company engaged in the following transactions in July.

July 1 Sold merchandise to Bernice Wilson on credit, terms 2/10, n/30, FOB shipping point, $2,100 (cost, $1,260).

July 3 Purchased merchandise on credit from Simic Company, terms n/30, FOB shipping point, $3,800.

July 4 Accepted for full credit a return from Bernice Wilson and returned merchandise to inventory, $200 (cost, $120).

July 5 Paid Banner Freight for freight charges on merchandise received, $290.

July 6 Purchased merchandise on credit from Hayes Supply Company, terms n/20, $636.

July 8 Purchased merchandise on credit from Salinas Company, terms n/30, FOB shipping point, $3,600, which includes $200 freight costs paid by Salinas Company.

July 9 Received payment from Bernice Wilson (July 1 purchase)

July 12 Returned some of the merchandise received on July 3 for credit, $600.

July 16 Received a $100 credit memo for the  July 6 purchase for minor defects.

The merchandise was not returned.

July 17 Sold merchandise for cash, $1,000 (cost, $600).
 
July 24 Paid Simic Company for purchase of July 3. 
 
Required - 

1. Prepare general journal entries to record the transactions, assuming use of the periodic inventory system.

2. Prepare general journal entries to record the transactions, assuming use of the perpetual inventory system.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Accounting) Materials
Two alternatives have the following cash flows: Year Alternative-A Alternative-B 0 -$2000 -$2800 1 $800 $1100 2 $800 $1100 3 $800 $1100 At a 5% interest rate, fill in the miss
Heathrow issues $2,300,000 of 8%, 15-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,987,457
what must auditors do to meet their obligations under professional auditing standards related to the observation of inventory?
Total payroll was $472,500, of which $157,700 is exempt from Social Security tax because it represented amounts paid in excess of $106,800 to certain employees. The amount pai
When searching for unrecorded liabilities, the auditors consider transactions recorded _____ year-end. To gain overall assurance as to the reasonableness of accounts payable,
On December 31, 2014, Powers sold an administrative building (depreciation expense goes to operating expense) to Sculley at a gain of $10,000. During 2015, the building was us
Prepare the journal entry to record the acquisition of the land. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. Compute the estimat
Charles has two college-age children, karl, a freshman at state university, and rose, a junior at northwest university. Both karl and rose are full time students. Karl’s expen