On November 1, 2021, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the contract to start immediately. King agreed to pay Taylor $6,000 for the one-year period. Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2022. Taylor should recognize revenue in 2021 in the armount of Multiple Choice $3,000. $0. $1.000.
Q: On July 1, 2022, Sheridan Company pays $18,500 to Wildhorse Co. for a 2-year insurance contract.…
A: Journal Entry: Date General Journal Debit Credit Jul. 1 Cash $18,500…
Q: , Shyam Construction Co. entered into a contract with a customer for the construction of a building.…
A: Under percentage completion method , revenue is recognized as the % of completion. The % of…
Q: d, if the contractor was able to finish the building earlier than agreed, it will be rewarded an…
A: In the given situation, a construction contract was agreed upon at certain price with an cost…
Q: Shumpert, Inc., entered into a contract that was to take two years to complete, with an estimated…
A: Given: 2019 2020 Contract Price 1,300,000 Costs incurred 675,000 275,000 Under…
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: Given details: A) Stand-alone price of handset= $ $649.00 B) Stand-alone price of services =$1,536…
Q: total amount of revenue t
A: Revenue recognition refers to the concept that enables the business for computing the amount of…
Q: WCM Builders enters into a contract to build a shopping mall in 2019 for $6,000,000. Completion of…
A: The income to be recognized by the company in 2019 needs to be determined in the given situation as…
Q: On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 200,000, over the…
A: Revenue Recognition - As the relevant rules of the GAAP revenue should be recognized when the…
Q: 6. On October 1, 2020, Perfect Support, Inc. receives $3,000,000 cash from a large corporate client.…
A: Revenue Recognition principle states that revenues should recognized in the books of accounts only…
Q: . Allee Corp. is evaluating a revenue arrangement to determine proper revenue recognition. The…
A: According to ASC 606 Tin this case amount of variable consideration will be calculated by using -…
Q: On May 1, 2020, Marin Inc. entered into a contract to deliver one of its specialty mowers to…
A: DATE PARTICULARS DEBIT CREDIT a) May 1, 2020 No entry is required as a contract was…
Q: In 2019, PJD Construction Corporation began construction work under a 3-year contract. The contract…
A: In the case of the percentage-of-completion method/overtime for financial accounting purposes.…
Q: One July 1, 2020 Bob signed an agreement to operate as a franchisee of abc co for an initial…
A: Down payment in this case, is the initial or upfront amount that need to be made while entering into…
Q: On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 200,000, over the…
A: Total amount paid on August 31, 2020 = Total amount of services x 35% = RO 200000 x 35% = RO 70000
Q: 1. On January 1, 2020, Sheffield signed an agreement to operate as a franchisee of Hsian Copy…
A:
Q: In January 2019, Dumdum Inc. paid property taxes on its factory building for the calendar year 2019…
A: Here in this question, we are require to determine how much expense need to reflect in each interim…
Q: On May 1, 2020, Indigo Inc. entered into a contract to deliver one of its specialty mowers to…
A: Journal entry record the financial transactions. In case money is received in advance, it is…
Q: Betina Apparael Inc., operates a retail store and must determine the proper December 31, 2019,…
A: Accrued Expenses:- These are the expenses that have been recorded in the books of accounts or…
Q: Swifty’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of…
A: Commission = $ 90 per policy Total commission = $ 90 * Number of policies sold Total Additional…
Q: The following tutorial questions serve as practice questions on TVM and Bond Valuation. (Show…
A: Under this method, interest will be calculated on the balances at the end of period as specified. As…
Q: Nash’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of…
A: 1.) Transaction price = $12075 Commission on sale 75 x $116 $8700 Additional commission 75 x…
Q: Larkspur Financial Services performs bookkeeping and tax-reporting services to startup companies in…
A: Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Cash $10,500…
Q: On July 1, 2021, Blossom Inc. entered into a contract to deliver one of its specialty machines to…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Delta Spirit, Inc. entered into a contract to sell equipment to Wilco, LLC on October 1, 2021. Along…
A: When the consideration received for the sale included not only the sale of goods but also includes…
Q: On January 1, 2018, Star Construction Company entered into a contract with KC Company to build a…
A: As per our protocol we are supposed to answer one full question. Kindly repost the question to get…
Q: On January 1, 2021, Gemini Company contracted with a contractor to construct a building for…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: On January 1, 2020, BuilderOne Inc. enters into a contract with a customer to redesign and update an…
A: As the company recognizes the revenue appropriately at a point in time, the percentage of completion…
Q: Engelhart Company licenses customer relationship software to Kristin Incorporated for 3 years. In…
A: PLEASE GIVE A LIKE your like matters (a) If the performance obligations are interdependent: the…
Q: On June 1, 2020, Chesnaught entered into a franchise agreement with Quilladin Inc. to sell their…
A: The initial franchise fee could be a fee paid to a franchisor in exchange for establishing a…
Q: July 31, 2020, Stewart Security was awarded a contract for $102,000 to provide 3,000 hours of…
A: Here revenue is to be recognized over a period of time. As per IFRS 15 any amount received as…
Q: Brainy Company started the construction of a building for a customer at a fixed contract price of…
A: Hi, as you have posted multiple sub parts but as per the Bartleby policy we are able to solve the…
Q: On January 1, 2019, XYZ Company contracted Y Construction Co. to construct a building for $2,800,000…
A: Required journal entries are given below:
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: Answer 1: Given information, The unlimited talk and 2 GB data plan is priced = $49 per month…
Q: Merville is a dealer in real properties. Merville requires 20% downpayment, and the balance is…
A: Answer: We have Gross profit = 40% of Selling price Selling price of lot 1 in 2019= P 1,350,000…
Q: On January 1, 2018, DMCI Company started the construction of a building at a fixed contract price of…
A: Particulars 2019 Cumulative costs incurred 800,000 Remaining Estimated costs to be completed…
Q: On January 1, 2018, DMCI Company started the construction of a building at a fixed contract price of…
A: Fixed contract price - P1,000,000 Billing to customer - 30% during 2018 20% during 2019 40% during…
Q: On October 10, 2020, Executor Co. entered into a contract with Belisle Inc. to transfer Executor's…
A: Journal entries are the transactions that are recorded in the primary book. They are chronological…
Q: On July 1, 2019, Park Company leased office space for ten years to Rudd at a monthly rental of…
A: Amount receivable at December 31, 2019 should be monthly rent for the month of December which is not…
Q: On January 2, 2020, Cluckin' Bells Company entered into a franchise agreement with Mr. Princeton to…
A: Initial Franchise Fees Cash 700,000 Other 1800,000 Interest on Balance Amount of…
Q: Swifty’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of…
A: Transaction price is defined as the consideration amount that entity expects to receive for…
Q: On January 1, 2019, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays…
A: The journal entries for Fulton Inc. are shown as below: Working Notes: Computation of…
Q: A Franchisor entered into a franchise agreement with B, franchisee, on March 31, 2021. The total…
A: A franchise is an agreement in which the owner of the asset (an asset can be the intangible asset or…
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: In the given case, Company enters into two years contract The cost of a wireless plan is $68 per…
Q: Nair Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The…
A:
Q: On August 31, 2022, Nova Corporation signed a four-year contract to provide services for Minefield…
A: Under the accounting, the accrual basis is the one where the revenues are recognized or recorded…
Q: On May 1, 2021,Varga Tech Services signed a $6,000 consulting contract with Shaffer Holdings. The…
A: For recognizing the revenues, revenues must have accrued to the business. In the given situation,…
Q: In the beginning of the year 2019, EMR LLC a construction company based in ibri, has made all the…
A: a) Under accrual system of accounting, expense or revenue has to be recorded in the period it…
Q: Holt Industries received a $2,000 prepayment from the Ramirez Company for the sale of new office…
A:
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: Loud Company enters into 2 year contract with a Customer and provides services Unlimited talk time…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial services. The contract sets the price at 12,000 per year, which is the normal standalone price that Mopps charges. On December 31, 2020, Mopps and Conklin agree to modify the contract. Mopps reduces the fee for the third year to 10,000, and Conklin agrees to a 4-year extension that will extend services through December 31, 2024, at a price of 15,000 per year. At the time that the contract is modified, Mopps is charging other customers 13,500 for the cleaning and janitorial service. Required: Should Mopps and Conklin treat the modification as a separate contract? If so how should Mopps account for the contract modification on December 31, 2020? Support your opinion by discussing the application to this case of the factors that need to be considered for determining the accounting for contract modifications.On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?On October 1, 2019, Grahams WeedFeed Inc. signs a contract to maintain the grounds for BigData Corp. The contract ends on March 31, 2020, and has a monthly payment of 3,200. The contract does not include any stipulations for additional periods. On June 1, Grahams WeedFeed and BigData sign a new 12-month contract that is retroactive to April 1, 2020. The monthly fee for the new contract is 4,000 per month and is also retroactive to April 1, 2020. During April and May of 2020, while the new contract was being negotiated, Grahams Weed Feed continued to maintain the grounds, and BigData continued to pay 3,200 per month. BigData was satisfied with Grahams WeedFeeds performance, and the only issue during negotiations was the monthly fee. Required: Determine if a valid contract exists between Grahams WeedFeed and BigData during April and May 2020.
- C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2021, to advance Jeff $45,000 on a one-year, 7 percent note, with interest to be paid at maturity on February 28, 2022. CSM prepares financial statements on June 30 and December 31. Required: Prepare the journal entries that CSM will make: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount.) 1. When the note is established 2. Prepare the journal entries to accrue interest on June 30 and December 31. 3. to record the principal payment at the maturity date View transaction list Journal entry worksheet CC&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2021, to advance Jeff $40,000 on a one-year, 7 percent note, with interest to be paid at maturity on February 28, 2022. CSM prepares financial statements on June 30 and December 31. Required: Prepare the journal entries that CSM will make: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount.) 1. When the note is established 2. Prepare the journal entries to accrue interest on June 30 and December 31. 3. to record the principal payment at the maturity dateC&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2021, to advance Jeff $35,000 on a one-year, 7 percent note, with interest to be paid at maturity on February 28, 2022. CSM prepares financial statements on June 30 and December 31. Required: Prepare the journal entries that CSM will make: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount.) When the note is established To record the interest accruals at each quarter-end and interest payments at each payment date to record the principal payment at the maturity date
- C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2018, to advance Jeff $30,000 on a one-year, 7 percent note, with interest to be paid at maturity on February 28, 2019. CSM prepares financial statements on June 30 and December 31. Prepare the journal entry CSM will make when the note is established, accrue interest on June 30 and December 31, and the interest and principal payments on February 28, 2019. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount.) Record the receipt of a note on February 28, 2018 for a $30,000 loan to an employee. (Note: Enter debits before credits.) Date General Journal Debit Credit Feb 28, 2018 [ ] […On December 1, 2020, Shyam Construction Co. entered into a contract with a customer for the construction of a building. The contract prices are $44,00,000, which is to be billed to the customers periodically based on Shyam's progress on the construction. The estimated total contract cost is $28,00,000. The actual costs incurred in 2020 amounts to $12,00,000. Requirement: The revenue to be recognized in 2020On January 1, 2019, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays $100,000 at the time the contract is signed, at which time the goods are transferred and Fulton’s performance obligation is complete. In addition, Gibson agrees to pay Fulton $100,000 on December 31, 2019, and December 31, 2020. If Fulton entered into a financing arrangement with Gibson it would charge an interest rate of 9%. Please assist with the journal entries. Thank you! There are 8 journal entries in all.
- In 2019, PJD Construction Corporation began construction work under a 3-year contract. The contract price was P4,000,000. PJD uses the percentage-of-completion method/over time for financial accounting purposes. The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract. The financial statement presentation relating to this contract at December 31, 2019 was as follows: What is the recognized revenue in 2019?Use the following information for the next two questions. Funan Industries purchases new specialized manufacturing equipment on July 1, 2019. The equipment cash price is P79,000. Funan signs a deferred payment contract that provides for a down payment of P10,000 and an 8-year note for P103,472. The note is to be paid in 8 equal annual payments of P12,934. The payments include 10% interest and are made on June 30 of each year, beginning June 30, 2020. (1) The carrying amount of the note payable on December 31, 2020 is a. P66,115 b. P62,966 c. P59,818 d. P56,329 (2) The total interest expense for the year ended December 31, 2020 is a. P6,900 b. P6,612 c. P6,599 d. P5,982Ongoing Service Contract Service Provider Company (SPC) and Customer A (CA) have recently began doing business together on a 48 month contract. The contract can be ended if either party is unsatisfied, as long as the parties are equal in terms of cash payments and services provided. Both companies follow GAAP and have a Dec 31 year end. Review the following activity in 2021 and 2022. Show your work on the PDF Upload. T accounts would be appropriate. 2021: SPC provides monthly services beginning October 1, $2,000 per month. You can assume these services are provided 021 for (earned) by SPC on an ongoing basis for this problem. * CA pays a $16,000 cash payment on October 1, 2021. A) How much revenue should SPC record from CA for the 2021? $ B) How much would SPC show as unearned revenue as of Dec 31, 2021. If none, write 0. $ C) How much I| Proctorio is sharing your screen. Dec 31, 2021 Stop sharing Hide tv MacBook Pro