User Account

All Pages

Prepare a separate timeline for each transaction to formally

Assignment Help Accounting Basics
Reference no: EM131009288

Consider the following contracts that a company has entered into:

The company sold product to a customer, shipping the product on 10/27 for an agreed-upon sales price of $3,000. The customer can pay $2,800 to fully settle the bill by 11/10 (i.e. there's an early-pay discount), or must pay the full $3,000 thereafter. 

The product cost the company $1,900 to make in September of 2015. The customer paid the bill on 11/10.
The company ordered maintenance services from a supplier. The company paid $500 up front on 10/15. The services are rendered evenly during the 2-week period of 10/25 to 11/07.

The company borrowed $1,000 on 10/31. The contract calls for equal payments of interest of $30 every 6 months for the next 4 years, after which the company will re-pay the principal of $1,000.

An earthquake hits a town on 10/30 where the company owns a production facility, causing $250,000 in damage to company assets. The company carries insurance on its productive assets. The insurance company processes the company's claim, and notifies the company on 11/28 that it will pay for 80% of damage some time in December.

Say that the company prepares financial statements at the end of each month.

1. Prepare a separate timeline for each transaction to formally show when the company is impacted by each transaction or event over the months of September, October, and November.

2. Under cash basis account, what would the company report in each financial statement (balance sheet, income statement, and cash flow statement) for:

a. September?
b. October?
c. November?

3. Under accrual basis account, what would the company report in each financial statement (balance sheet, income statement, and cash flow statement) for:

a. September?
b. October?
c. November?

Reference no: EM131009288

Questions Cloud

Two attributes of a new product : A marketing study asked potential customers for their preferences for two attributes of a new product, the color and the packaging. The color of the final product is to be chosen by one manager and the packaging by another. Is this division of lab..
What adjustments to the pricing strategy : What adjustments to the pricing strategy would you recommend to the marketer in relation to the product or service that failed to provide good value
Find association between variables : (a) What would it mean to find association between these variables? (b) Does the table show association? (You shouldn't need to do much calculation.)
Find the distance from the origin to point on the given line : Find the distance from the origin to the point on the line y=-2x+3 that is closest to the origin. Round your answer to two decimal places.
Prepare a separate timeline for each transaction to formally : Prepare a separate timeline for each transaction to formally show when the company is impacted by each transaction or event over the months of September, October, and November. Under cash basis account, what would the company report in each financial..
Association between variables : This table shows counts from a consumer satisfaction survey of 2,000 customers who called a credit card company to dispute a charge. One thousand customers were retired and the remaining were employed.
Globalisation and the deregulation of financial markets : Globalisation and The deregulation of financial markets the showcase - Globalisation has taken an important place in our lives especially the deregulation of financial markets.
If i purchase textbook does the access code come with it? : If I purchase textbook does the access code come with it?
Total and annual returns write up : Total and Annual Returns Write Up. Twenty years after purchasing shares in a mutual fund for $6500, you sell them for $11300.  compute total and annual returns on the investment.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Research concerning police officers and their jobs

You are interested in conducting research concerning police officers and their jobs. The information you want to gather, including job satisfaction or job hazards, is up to you as long as you clearly state the goal of your research. The method you..

  Prepare a capital budget analysis

Based on the Inputs below, prepare a Capital Budget Analysis for this Base Case using the Net Present Value, Internal Rate of Return, Profitability Index and Payback in year's methods, determining whether the project is feasible.

  How much money must the company borrow in july

The company plans to purchase a new building for $200,000 in July and sell its marketable securities for $100,000. If the company must maintain a minimum cash balance of $50,000, how much money must the company borrow in July?

  There are three major categoriessections of the statement

there are three major categoriessections of the statement of cash flows. is it possible that it could considered

  What conditions is the development of an expert system

Under what conditions is the development of an expert system likely to be worth the effort?

  Amagazine company received 800 today from subscribers the

according to the revenue recognition principle if revenue to is going to be recognized in august indicate the amount

  A company has 3500000 of short-term debt that comes due on

a company has 3500000 of short-term debt that comes due on march 12th. on february 5th they pay off the 3500000. on

  Analyze the accounting equation effects of the transactions

Analyze the accounting equation effects of the transactions in M2- 17 using the format shown in the chapter and compute total assets, total liabilities, and total stockholders' equity. a. Ordered and received $ 12,000 worth of cotton candy machines f..

  Overhead based on direct labor hours

The actual manufacturing overhead cost for the year was $602,000 and the actual direct labor cost for the year was $456,000. Actual direct labor hours totaled 40,200 and machine hours totaled 79,000. Samli applies overhead based on direct labor ho..

  Declared a 2 stock dividend on common stock and a 125

declared a 2 stock dividend on common stock and a 1.25 quarterly cash dividend per share on preferred stock. on the

  Eden contributed 30000 in cash to the business to receive a

the abcd partnership has the following balance sheet at january 1 2013 prior to the admission of new partner eden.cash

  Explain the necessity of supervision over fixed assets

Explain the necessity of supervision over fixed assets.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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