Reference no: EM131219174
Revenue Recognition Alternatives
Slattery Company was formed on January 1, 2013, to build a single product. The company issued no-par common stock on that date for $260,000 cash. The product costs $18 to make, all of which is paid in cash at the time of production. Slattery sells each unit of the product for $35 on credit and incurs sales commissions per unit of $3 cash. In 2013, Slattery produced 13,000 units, shipped 11,000 units, and received payment for 9,000 units.
1a. Prepare the 2013 income statement under revenue recognition at the completion of the earnings process.
Income Statement (2013)
Revenue
Cost of goods sole
Selling expense
Net Income
Prepare the 2013 ending balance sheet under revenue recognition at the completion of the earnings process.
Cash
Accounts receivable
Inventory
Total
Common stock, no par
Retained earnings
Total
1b. Prepare the 2013 income statement under revenue recognition prior to the completion of the earnings process. Requried:
Revenue
Production expense
Selling expense
Net Income
Prepare the 2013 ending balance sheet under revenue recognition prior to the completion of the earnings process. Required:
Cash
Accounts receivable
Inventory
Total
Accured selling expenses
Common stock, no par
Retained earnings
c. Prepare the 201income statement under revenue recognition at the completion of the earnings process as cash is received. Required
Revenue
Cost of goods sold
Selling expense
Net Income
Prepare the 2013 ending balance sheet under revenue recognition at the completion of the earnings process as cash is received. Required:
Cash
Prepaid selling expenses
Inventory
Total
Common stock, no par
Retained earnings
Total
|
The equivalent units of production this month
: Assume that the equivalent units of production this month for Alabama Red's Hot Sauces are 8,350. If the costs in beginning inventory were $450.00 and current manufacturing costs were $5,311.50, then the cost assigned to the 8,000 units completed wou..
|
|
Actual direct material costs-actual direct labor costs
: When product costs reflect the actual direct material costs, actual direct labor costs, and actual overhead costs, the cost system being used is a(n): a. direct cost system b. normal costing system c. actual cost system d. common cost system
|
|
The correct journal entry to record the transfer
: The correct journal entry to record the transfer of $120,000 of raw materials into production is:
|
|
Distribute manufacturing overhead cost to the product
: Some item or type of activity that is used to proportionately distribute manufacturing overhead cost to the product being produced is known as:
|
|
Under revenue recognition at completion of earnings process
: Slattery Company was formed on January 1, 2013, to build a single product. The company issued no-par common stock on that date for $260,000 cash. The product costs $18 to make, all of which is paid in cash at the time of production. Prepare the 2013 ..
|
|
Benefactor now offers you the choice of two opportunities
: Your wacky benefactor now offers you the choice of two opportunities: Invest $1,000 today and quadruple your money—a 300 percent return—in 1 year with no risk.
|
|
The correct journal entry to record the purchase
: The correct journal entry to record the purchase of $320,000 of raw materials on account is:
|
|
What would be the coupon rate
: If the 10-year Australian government bond rate is currently 3.8%, what would be the coupon rate at which a 10-year corporate bond rate for Seuss Inc would be set, taking into account the fact that the spread for a company with the same (5.6%) probabi..
|
|
Aspects would not be included in the social category
: Which of the following aspects would not be included in the Social category of the GRI G4 reporting? guidelines?
|