ZuoTi.Pro
Question

Problem 6: Revenue Recognition (6 points) Horowitz Paint Shop sold $3,000 of paint to a local construction company for cash o

1.) For the second quarter ending on June 30, how much revenue should Horowitz recognize for the sale to the local construction company?

2.) What type of arrangement is this?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1.) In quarter ending on june 30, the revenue recognised is $3,000 for the sale to local construction company. Because in case of delayed delivery of the goods on the request of buyer and the buyer accepts the bill and title of the goods, then the seller recognised its revenue when the ownership get transferred which is June 25.

2.) This is Bill and hold arrangement.

0 0
Add a comment
Know the answer?
Add Answer to:
1.) For the second quarter ending on June 30, how much revenue should Horowitz recognize for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • assume the same facts as in BE-5-23. how much revenue will Saar recognize in 2018 under...

    assume the same facts as in BE-5-23. how much revenue will Saar recognize in 2018 under this arrangement if Saar report under IFRS Saar Associates, which Saar advertises on an ongoing basis. How much revenue will Saar recognize in 2018 under this arrangement? The Role of Accounting as an Information System SECTION 1 278 mar- ketplace and the owner provides no advertising or other benefits to a licensee of the Saar Associates trade pu during the license period. How much...

  • 1. Royal Company is preparing budgets for the second quarter ending June 30. Last year's sales...

    1. Royal Company is preparing budgets for the second quarter ending June 30. Last year's sales for the corresponding period were: March 15,000 units April 18,000 units May 28,000 units June 26,000 units July 19,000 units August 12,000 unit. The company expects this year's sales to increase by 25%. The selling price is $13 per unit. Prepare a Sales Budget for Royal Company.

  • Brief Exercise 6-1 (Algo) Revenue recognition at a point in time (L06-2] On July 1, 2021....

    Brief Exercise 6-1 (Algo) Revenue recognition at a point in time (L06-2] On July 1, 2021. Apache Company, a real estate developer, sold a parcel of land to a construction company for $2,880,000. The book value of the land on Apache's books was 51.280,000. Terms of the sale required a down payment of $320,000 and 8 annual payments of $320,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2022 How much revenue will Apache...

  • Royal Company is preparing budgets for the second quarter ending June 30. Last year's sales for...

    Royal Company is preparing budgets for the second quarter ending June 30. Last year's sales for the corresponding period were: A. The company expects this year's sales to increase by 25%. The selling price is $13 per unit. Prepare a Sales Budget. B. The company desires to have finished inventory on hand at the end of each month equal to 30 percent of the following month's budgeted unit sales. On March 31, there were 3,000 units on hand. Prepare a...

  • correct the first problem then complete the second problem Brief Exercise 6-25 (Algo) Timing of revenue...

    correct the first problem then complete the second problem Brief Exercise 6-25 (Algo) Timing of revenue recognition; licenses (L06-7] Saar Associates sells two licenses to Kim & Company on September 1, 2021. First, in exchange for $110,000, Saar provides Kim with a copy of its proprietary investment management software, which Saar does not anticipate updating and which kim can use permanently. Second, in exchange for $99,000, Saar provides Kim with a four-year right to market Kim's financial advisory services under...

  • The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements...

    The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded. On December 1, 2020, the company paid its annual fire insurance premium of $6,000 for the year beginning December 1 and debited prepaid insurance. On August 31, 2020, the company borrowed $80,000 from a local bank. The note requires principal and interest at...

  • The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements...

    The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded. On December 1, 2020, the company paid its annual fire insurance premium of $5,600 for the year beginning December 1 and debited prepaid insurance. On August 31, 2020, the company borrowed $92,500 from a local bank. The note requires principal and interest at...

  • The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements...

    The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded OK 1. On December 1, 2020, the company paid its annual fire insurance premium of $3,200 for the year beginning December 1 and debited prepaid insurance 2. On August 31, 2020, the company borrowed $50,000 from a local bank. The note requires principal...

  • The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements...

    The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded. 1. On December 1, 2020, the company paid its annual fire insurance premium of $2,800 for the year beginning December 1 and debited prepaid insurance 2. On August 31, 2020, the company borrowed $42,500 from a local bank. The note requires principal and...

  • Question 1 For a firm to recognize revenue, it must 1 point Have delivered something to...

    Question 1 For a firm to recognize revenue, it must 1 point Have delivered something to the customer have received at least some cash from the customer be earned and realized/realizable either have received cash or have a signed contract 2. Question 2 Your friend Yong has a company making and selling watches with bands that are customized to match university colors. The business started locally, but now has expanded around the world. His strategy is to sell in bulk...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT