Prepare the journal entries for grill master

Assignment Help Accounting Basics
Reference no: EM13973130

a. Grill Master offers contract GM205, which is comprised of a free-standing gas grill for small patio use plus installation to a customer's gas line for a total price $830. On a standalone basis, the grill sells for $730 (cost $400), and Grill Master estimates that the fair value of the installation service (based on cost-plus estimation) is $140. Grill Master signed 8 GM205 contracts on April 20, 2014, and customers paid the contract price in cash. The grills were delivered and installed on May 15, 2014. Prepare journal entries for Grill Master for GM205 in April and May 2014.

b. The State of Kentucky is planning major renovations in its parks during 2014 and enters into a contract with Grill Master to purchase 440 durable, easy maintenance, standard charcoal grills during 2014. The grills are priced at $195 each (with a cost of $165 each), and Grill Master provides a 5% volume discount if Kentucky purchases at least 295 grills during 2014. On April 17, 2014, Grill Master delivered and received payment for 270 grills. Based on prior experience with the State of Kentucky renovation projects, the delivery of this many grills makes it certain that Kentucky will meet the discount threshold. Prepare the journal entries for Grill Master for grills sold on April 17, 2014.

C.Grill Master sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1,100 (cost $615) on credit with terms 3/30, net/90.

Prepare the journal entries for the sale of 21 grills on September 1, 2014, and upon payment, assuming the customer paid on September 25, 2014. Assume the company records sales net.

d. Grill Master sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1,100 (cost $615) on credit with terms 3/30, net/90.

Prepare the journal entries for the sale of 21 grills on September 1, 2014, and upon payment, assuming the customer paid on October 15, 2014. Assume the company records sales net.

e.On October 1, 2014, Grill Master sold one of its super deluxe combination gas/charcoal grills to a local builder. The builder plans to install it in one of its "Parade of Homes" houses. Grill Master accepted a 3-year, zero-interest-bearing note with face amount of $5,300. The grill has an inventory cost of $2,625. An interest rate of 12% is an appropriate market rate of interest for this customer.

Reference no: EM13973130

Questions Cloud

Was the decision to offshore successful : How well did GlobShop manage the change process after making the decision to offshore?
Different ways to pass values to methods : There are 2 different ways to pass values to methods. List these 2 methods and discuss how they can be used. Included the pros and cons of each type
Determining the original cost of the asset : A company sold equipment for $55,000. Total accumulated depreciation at the time of the sale was $22,500 and a loss of $12,500 was recognized on the sale. What was the original cost of the asset?
Find magnitude of the velocity of the interlocked vehicles : Two vehicles A and B are traveling west and south, respectively, toward the same intersection where they collide and lock together. Before the collision A (total weight 1100 N) is moving with a speed of 73 m/s and B (total weight 1330 N ) has a sp..
Prepare the journal entries for grill master : Based on prior experience with the State of Kentucky renovation projects, the delivery of this many grills makes it certain that Kentucky will meet the discount threshold. Prepare the journal entries for Grill Master for grills sold on April 17, 2..
Determining the types of assets : What does "flight to safety" means? In this situation, which types of assets are investors likely lead to? Would an increase in equity risk premium likely lead higher or to lower stock price? Briefly explain
What is the galvanometer current : 1. In an unbalanced Wheatstone bridge the potential across the galvanometer is not zero. If the galvanometer resistance is 20?, what is the galvanometer current? Take R1 = 4?, R2 = 1?, RS = 6?, RX = 3?, R = 0 ?, and V = 20V. [Hint: neglect resisto..
Calculate the total cost of outsourcing the online help desk : Calculate the total cost of outsourcing the online help desk versus staying with the current solution. Which option is cheaper? What other factors, other than costs, should Pagoda consider? How would you weigh these factors? Given the above, how mig..
What is an abstract class in java? provide an example. : This is for Java experts only! The answers need to include a small bit of Java code.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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