Prepare the journal entries agrifoods would record

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Reference no: EM133928433

Problem

AgriFoods, Incorporated prepares and delivers agricultural products to industrial-scale kitchens and food service providers. One of its key customers is Home Kitchen &; Company, which provides cafeteria solutions for corporations and universities. On January 1, 2027, AgriFoods obtained a one-year contract to supply a pre-specified amount of vegetables to Home Kitchen, and received $603,000 in cash. Then, on March 15, AgriFoods hired Home to run one of its employee cafeterias for a period of six months, from April to September, and paid $70,350 in cash. For similar arrangements, Home usually charged $50,250. Get the instant assignment help. Required: (i) Prepare the journal entries AgriFoods would record on January 1, 2027 and January 31, 2027 with respect to the sales contract. Assume revenue is accrued on a monthly basis. Book (ii) Prepare the journal entry to account for AgriFoods'; purchase of Home's services.

Reference no: EM133928433

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