Prepare yared journal entries to record the sale on july

Assignment Help Financial Accounting

Reference no: EM132481438

Financial Accounting: Group Assignment: Submission Date January 15, 2019 G.C

1. On July 10, 2019, Yared Music sold CDs to retailers on account and recorded sales revenue of $700,000 (cost $560,000). Yared grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2019, retailers returned CDs to Yared and were granted credit of $78,000.

Question 1: Prepare Yared journal entries to record (a) the sale on July 10, 2019, (b) $78,000 of returns on October 11, 2019, and (c) any entry necessary on October 31, 2019. Assume that Yared prepares financial statement on October 31, 2019.

2. KK Company sold 10,000 Super-Spreaders on December 31, 2019, at a total price of $1,000,000, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $550,000. The assurance warranties extend for a 2-year period and are estimated to cost $40,000. KK also sold extended warranties (service-type warranties) related to 2,000 spreaders for 2 years beyond the 2-year period for $12,000.

Question 2: Given this information, determine the amounts to report for the following at December 31, 2019: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash

3. Ting Group began work on a 7,000,000 contract in 2019 to construct an office building. During 2019, Ting Group incurred costs of 1,700,000, billed its customers for 1,200,000, and collected 960,000. At December 31, 2019, the estimated additional costs to complete the project total 3,300,000.

Question 13: Prepare Ting's 2019 journal entries using the percentage-ofcompletion method.

4. Aser Construction Company began work on a $420,000 construction contract in 2019. During 2019, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At December 31, 2019, the estimated additional costs to complete the project total $162,000.

Question 4: Prepare Aser journal entry to record profit or loss, if any, using the percentage-of-completion method

5. On March 10, 2019, Steele Company sold to Barr Hardware 200 tool sets at a price of $50 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Steele allows Barr to return any unused tool sets within 60 days of purchase. Steele estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2019, Barr returned six tool sets and received a credit to its account.

Instructions

Question 5a. Prepare journal entries for Steele to record (1) the sale on March 10, 2019, (2) the return on March 25, 2019, and (3) any adjusting entries required on March 31, 2019 (when Steele prepares financial statements). Steele believes the original estimate of returns is correct.

Question 5b. Indicate the income statement and statement of financial position reporting by Steele at March 31, 2019, of the information related to the Barr sales transaction.

6. Zemzem S.C. enters into an agreement on March 1, 2019, to sell Adama Metal aluminum ingots. As part of the agreement, Zemzem also agrees to repurchase the ingots on May 1, 2019, at the original sales price of €200,000 plus 2%.

Instructions

Question 6: A. Prepare Zagat's journal entry necessary on March 1, 2019.

Question 6: B. Prepare Zagat's journal entry for the repurchase of the ingots on May 1, 2019.

7. On May 3, 2019, Glorious Company consigned 80 freezers, costing $500 each, to Dani Company. The cost of shipping the freezers amounted to $840 and was paid by Glorious Company. On December 30, 2019, a report was received from the consignee, indicating that 40 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $200, and total installation costs of $320 on the freezers sold.

Instructions

Question 7 A. Prepare the necessary journal entries under the consignee and consignor books

Reference no: EM132481438

Questions Cloud

Determine and show the statement of profit or loss : Show the statement of profit or loss and statement of financial position extracts in respect of the grant in the first year under both methods.

PSY-1171 Child Growth and Development Assignment : PSY-1171 Child Growth and Development Assignment help and solution, Lethbridge College - assessment writing service

What is rationale of why the audit firm owns all workpaper : Audit that was started by another company, who have been dismissed. What considerations would help to decide if you would accept the offer?

Calculate earnings per share on the face of income statement : Calculate earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 25% on all items

Prepare yared journal entries to record the sale on july : Prepare Yared journal entries to record (a) the sale on July 10, 2019, (b) $78,000 of returns on October 11, 2019, and (c) any entry necessary on October

Compute the correct final balance of inventory : Compute the correct final balance of Inventory, On December 31, Edwards Company had an ending inventory of $83,900 based primarily

Critical response memo : Statement ofthe research question(s) that each author expressly or implicitly seeks - An analysis of how effective the research is at achieving

How would interpret the total amount for property : Compare the measures used by the different companies for similar items. Are there any inconsistencies in how similar items are measured by the different company

How much earnings tax would apply to the total returns : Nicholas is age 69 and is retired. He has $298000 in a retirement phase income stream account. For the current financial year his investments

User Account

All Pages