Melrose Milk Delivery provides weekly gourmet milk delivery to the residents of Nicetown. Melrose charges each customer $45 per week for its milk delivery, and it received advance payments for 2,000 weeks of milk delivery services in 2013. At December 31, 2013, two-thirds of the advance payments had been earned. Required: After the adjustments are recorded and posted at December 31, 2013, calculate what the balances will be in the Unearned Revenue and Revenue accounts. Unearned revenue $ Revenue $
Q: Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone Sellers then pays the…
A: workings: Given values: Telephone sellers sells $ 4000 of prepaid cards in January 2017.
Q: On January 1, Hi-r-Ed Wired Connection opened for business across the street from Northside…
A: The accrual concept states that the accounts should reflect all the incomes that have been earned…
Q: Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are…
A: Accrual accounting states that all income and expenses should be recorded in the year which they are…
Q: In January 2014, Victor, Inc. paid property taxes on its factory building for the calendar year 2014…
A: As per Matching Principal we have to match the revenues of a paticulars…
Q: ABC Corporation offers customers a reduced price for lawn care if they pay for 6 months service in…
A: Revenue recognition principle says that all revenues and expenses of the business are recognised in…
Q: Melrose Milk Delivery provides weekly gourmet milk delivery to the residents of Nicetown. Melrose…
A: Service companies that use the accrual method of accounting will periodically have to book unearned…
Q: Logan’s Roadhouse opened a new restaurant in November. During its first two months of operation, the…
A: Given information is: Logan’s Roadhouse opened a new restaurant in November. During its first two…
Q: On May 31, Marty’s Ice Cream Shop sells gift cards for $5,000. Customers redeem $1,200 in June,…
A: Definition: Gift cards are one form of an advanced collection of revenues. When gift cards are…
Q: Mr X enrolls in a 12-month customer service assistance program for a computer software from CYBER…
A: Revenue recognition principle is based on the accrual concept. It states that when the revenue is…
Q: Aria Perfume, Inc., sold 3,210 boxes of white musk soap during January of 2021 at the price of $90…
A: Number of performance Obligation In the given case, contract has not mention but it clear the…
Q: Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31,…
A: A record is typically kept in the general ledger, but it can also be kept in a specific account,…
Q: Environmental Services, Inc., performs various tests on wells and septic systems. A few of…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: On January 1, 2017, Jacob Fashions Inc. enters into a contract with a regional retail company to…
A: Journal is one of the basic books in which transactions are recorded in the order in which, they…
Q: Wall Design Services billed its customers a total of $490,200 for the month of August, including 9…
A: Sales tax and federal excise tax are collected by firm from their customers are the liabilities for…
Q: Listed below are selected transactions of Baileys’ Department Store for the current year ending…
A: Following are the journal entries:
Q: Logan’s Roadhouse opened a new restaurant in November. During its first two months of operation, the…
A: Journal entries means the book of prime entry incuding debit and credit item. Adjusting entry means…
Q: Pacifica Fitness Ltd is marketing a 'fitness package' in which, for $440, it provides customers with…
A: Fitness is one of the major necessity in today's world. As if you are fit you work , you stay…
Q: Logan’s Roadhouse opened a new restaurant in November. During its first two months of operation, the…
A: Transaction General Journal Debit Credit 1 Cash $1,750 Unearned Sales revenue…
Q: Required: Record the transactions occurred in the month of July in the general journal. Prepare…
A: A general journal is a subsidiary journal that records the journal entries for an accounting period.…
Q: Palantir Corp. sells specialized equipment to the healthcare industry. Palantir pays its sales…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: On December 10, Yummy Catering purchased a new oven costing $10,000. They issued a check for $2.000…
A: solution journal entry is used to record the transaction of the company in the question on December…
Q: Kylie Co. is a VAT-registered merchandising company. Kylie buys products from a local supplier for…
A: VAT Payable is the amount of Value added tax that is payable to the government by an individual. VAT…
Q: Merry Maidens Cleaning generally charges $300 for a detailed cleaning of a normal-size home.…
A: Trade discount: Seller of a product or service offers a reduction in the listed price of the…
Q: MODERN is a store with trendy and affordable furniture. MODERN has five part-time employees, each of…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: On July 15, 2017 Matrix Corp sells 20,000 snoe shovels to a distributor for $15 per shovel. The…
A: Sales Revenue The total amount of money earned by an organization from the sale of goods or the…
Q: A local Starbucks sells gift cards of $10,000 during the year. By the end of the year, customers…
A: Deferred revenues: Collection of cash in advance to render service or to deliver goods in future is…
Q: Below are four scenarios for a local Midas Muffler shop for the month of December.Scenario 1: On…
A: An adjusting journal entry is an entry in a company's general ledger that occurs at the end of an…
Q: Reliance Company manufactures and sells wireless video cell phones, which it guarantees for five…
A: Part1: Journal entries: Working: Estimated liability for product…
Q: Reliance Company manufactures and sells wireless video cell phones, which it guarantees for five…
A: Warranty expense can be defined as the expense that the company expects to generate or already…
Q: Listed below are selected transactions of Baileys’ Department Store for the current year ending…
A:
Q: Carmel of Fargo, North Dakota, publishes a monthly magazine featuring local restaurant reviews and…
A: Unearned Subscription Revenue: Unearned Subscription Revenue means money received from the customer…
Q: IP Company pays for purchases of materials in full in the month following the purchase. During the…
A: Definition: Following month means next month. Example Goods bought on January month and payment on…
Q: Logan's Roadhouse opened a new restaurant in November. During its first two months of operation, the…
A:
Q: Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains…
A: Accounts Receivable Aging method: The ageing method accounts receivables determine the amount of the…
Q: 45% of the requested services performed by the end of September, how would ABC record this revenue
A: The correct option is option 2 2. Dr Service Revenue - $6,750 Cr…
Q: Sparkling Pools provides $1,000 of pool maintenance services during July and collects payment in…
A: Revenue Recognition principle states that revenues should recognized in the books of accounts only…
Q: Real Losers, a diet magazine, collected P360,000 in subscription revenue in May. Each subscriber…
A: Answer - Working - Subscription revenue received for 12 months = $360,000 Subscription revenue…
Q: Emma Company sells services for $888 cash and $1,384 on account this month. Emma Company also pays…
A: Total sales related to this month = $888 + $1,384 = $2,272 Total expense related to this month =…
Q: Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the…
A: Unearned revenue: It is an advance made by the buyer before receiving the product or service. In…
Q: Blue, Inc., sells playground equipment to schools and municipalities. It mails invoices at the end…
A: Calculation of rate of increase in sales and account receivable:Results of formulas used in excel…
Q: On January 12, 2018 Julie prepaid $1,600 for pet care services to be provided each Friday for 8…
A: Adjusting entries are prepared at the end of the accounting period to ensure the accrual base…
Q: On June 1, one company collected total subscriptions of $22,800 in which they promise to deliver of…
A: From June 1 to December 31 = 7 months Subscription revenue has been earned for 7 months and remains…
Q: Muntinlupa Co. reported the following events to its bookkeeper covering the month of April 2021: T1:…
A: The transactional event is recorded in the books of the company. We will check here whether the…
Q: Triple Tier Bakery is a locally-owned business offering custom cakes, cupcakes, desserts and wedding…
A: Journal entry shows the recording of the transactions during an accounting year and every…
Q: Purrfect Pets, Inc. provides animal daycare for $ 28 per day. Customers buy three month packages,…
A: Compute cash received in January.
Q: Erin's Hair Styling files GST returns quarterly. During the first quarter of the year, Erin billed…
A: In 2021 year, GST Rates in Canadian Provinces and Territories is 5%
Melrose Milk Delivery provides weekly gourmet milk delivery to the residents of Nicetown. Melrose charges each customer $45 per week for its milk delivery, and it received advance payments for 2,000 weeks of milk delivery services in 2013. At December 31, 2013, two-thirds of the advance payments had been earned. Required: After the adjustments are recorded and posted at December 31, 2013, calculate what the balances will be in the Unearned Revenue and Revenue accounts.
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Blue, Inc., sells playground equipment to schools and municipalities. It mails invoices at the end of each month for all goods shipped during that month; credit terms are net 30 days. Sales and accounts receivable data for 2017, 2018, and 2019 follow: Years Ending December 31, 2017: Sales: $1,785,980 Accounts Receivable at year-end: $220,189 2018: Sales: $1,839,559 Accounts Receivable at year-end: $227,896 2019: Sales: $1,986,724 Accounts Receivable at year-end: $267,094 Required: 1. Calculate the rates of increase in sales and in receviables during 2018 and 2019. 2. Do your calculations indicate any potential problems with Blue's receivables? 3. If so, suggest a possible explanation for your findings and indicate what action, if any, would then be needed to bring Blue's financial statements into conformity with GAAP.Triple Tier Bakery is a locally-owned business offering custom cakes, cupcakes, desserts and wedding cakes. At year end, Triple Tier's balance of Allowance for Uncollectible Accounts is $530 (credit before adjustment. The Accounts Receivable balance is $21,500, During the next year, Triple Tier estimates that 15% of accounts will be uncollectible. Record the adjustment required for Allowance for Uncollectible Accounts? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for Allowance for Uncollectible Accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journalThe accountant for Eastern Appliances manages the “no money down” arrangements offered to its customers. A customer purchased a refrigerator normally priced at $1,284.53 with all taxes included. Using a required rate of return of 9% compounded quarterly, the accountant determined that, after a deferral period, the customer should make 12 monthly payments of $119.16, with the first payment due on November 1, 2020. On what date was the refrigerator purchased?
- Purrfect Pets, Inc. provides animal daycare for $ 28 per day. Customers buy three month packages, which provide 15 days of care per month. In January they received cash payments from 12 customers. For the month of January, they will recognize ________ of revenue under the cash basis, and ________ of revenue under the accrual basis. A. $15,120;$5,040 B. $ 420; $1,260 C. $5,040;$5,040 D. $15,120;$15,120During the month of December, Hexon steels made a 676,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5%. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Wall Design Services billed its customers a total of $490,200 for the month of August, including 9 percent federal excise tax and 5 percent sales tax. 1. Determine the proper amount of service revenue to report for the month.2. Prepare a journal entry to record the revenue and related liabilities for the month
- Sentry Transport Inc. of Atlanta provides in-town parcel delivery services in addition to a fullrange of passenger services. Sentry engaged in the following activities during the current year:a. Sentry received $5,000 cash in advance from Rich’s Department Store for an estimated 250deliveries during December 2019 and January and February of 2020. The entire amountwas recorded as unearned revenue when received. During December 2019, 110 deliverieswere made for Rich’s.b. Sentry operates several small buses that take commuters from suburban communities to thecentral downtown area of Atlanta. The commuters purchase, in advance, tickets for 50 onewayrides. Each 50-ride ticket costs $500. At the time of purchase, Sentry credits the cashreceived to unearned revenue. At year end, Sentry determines that 10,160 one-way rideshave been taken.c. Sentry operates several buses that provide transportation for the clients of a social service agencyin Atlanta. Sentry bills the agency quarterly at the…Sage sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1,010 (cost $601) on credit with terms 2/30, net/90. Prepare the journal entries for the sale of 20 grills on September 1, 2020, and upon payment, assuming the customer paid on (1) September 25, 2020, and (2) October 15, 2020. Assume the company records sales net. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) No. Date Account Titles and Explanation Debit Cre (1) (To record sales) (To record cost of goods sold)During December, Rainey Equipment made a 676,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5%. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
- Headland sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1,010 (cost $536) on credit with terms 2/30, net/90. Prepare the journal entries for the sale of 20 grills on September 1, 2020, and upon payment, assuming the customer paid on (1) September 25, 2020, and (2) October 15, 2020. Assume the company records sales net. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Accounts Receivable Sales Revenue To record sales) Cost of Goods Sold Inventory To record cost of goods sold) Cash Accounts Receivable Accounts Receivable Sales Revenue To record sales) Cost of Goods Sold Inventory. To record cost of goods sold) Cash Accounts Receivable Sales Discounts Forfeited Debit CreditYummy publishes magazines geared toward cooking enthusiasts. The company sells year-long subscriptions to its customers. At the beginning of January, the company sold $78,000 in yearly subscriptions. The customers receive one magazine on the 15th of each month. The company records adjusting entries semiannually on June 30 and December 31. Which of the following journal entries would the company record on June 30 to recognize the revenue earned? a.Debit Cash for $78,000 and credit Subscription Revenue for $78,000 b.Debit Unearned Subscription Revenue for $32,500 and credit Subscription Revenue for $32,500 c.Debit Unearned Subscription Revenue for $6,500 and credit Subscription Revenue for $6,500 d.Debit Unearned Subscription Revenue for $39,000 and credit Subscription Revenue for $39,000following to answer question For the next few weeks, the company is offering a 20% trade discount when providing services of $10,000 or more to its customers to encourage customers to buy more services. The company also offers 2/10,n30 on all credit sales. All credit sales are invoiced at the end of the month. The company provided the following services this month; amounts are shown before trade discounts have been deducted: Provides $12,000 services for Customer A- on account-pays within 10 days • Provides $7,000 services for Customer B-on account-pays within 10 days Provides $20,000 services for Customer C-on account-pays within 30 days Provides $8,000 services for Customer D-received payment last month . 1. $ What amount of Service revenue should the company record for Customer A?