Application Problem 4-5A a1, b-c (Part Level Submission)
Cool-IT Ltd. manufactures and sells air conditioning equipment
to retailers across North America. In 2020, Cool-IT signed a
two-year contract with BigMart Ltd. to supply it with 63,300 units
at a price of $78 per unit. Cool-IT’s cost to manufacture these
units is $51. The following schedule summarizes the production,
delivery, and payments in relation to the contract. Production
costs are recorded to inventory:
| 2020 | 2021 | Total | ||||
| Air conditioning units delivered | 41,500 | 21,800 | 63,300 | |||
| Production costs incurred | $2,116,500 | $1,111,800 | $3,228,300 | |||
| Cash payments received | $2,780,000 | $1,868,400 | $4,648,400 |
Determine how much revenue Cool-IT would be able to recognize in
2020 and 2021.
| Revenue recognized in 2020 | $
323000 |
|
| Revenue recognized in 2021 | $
170040 |
Using a Find B
Please work it in steps
|
|
Homework Answers
| Cool It Ltd. - Journal entries | |||
| Date | Account Title | Debit ($) | Credit ($) |
| 2020 | Accounts receivable - Big mart Ltd. | 3237000 | |
| Sales revenue ( 41500 * 78 ) | 3237000 | ||
| 2020 | COGS ( 41500 * 51 ) | 2116500 | |
| Merchandise inventory | 2116500 | ||
| 2020 | Cash | 2780000 | |
| Accounts receivable - Big mart Ltd. | 2780000 | ||
| 2021 | Accounts receivable - Big mart Ltd. | 1700400 | |
| Sales revenue ( 21800 * 78 ) | 1700400 | ||
| 2021 | COGS ( 21800 * 51 ) | 1111800 | |
| Merchandise inventory | 1111800 | ||
| 2021 | Cash | 1868400 | |
| Accounts receivable - Big mart Ltd. | 1868400 | ||
| Revenue recognised in 2020 | 3237000 | ||
| Revenue recognised in 2021 | 1700400 | ||
Add Answer to:
Application Problem 4-5A a1, b-c (Part Level Submission)
Cool-IT Ltd. manufactures and sells air conditioning equipment...
Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT...
Cool-IT Ltd. manufactures and sells air conditioning equipment
to retailers across North America. In 2020, Cool-IT signed a
two-year contract with BigMart Ltd. to supply it with 63,300 units
at a price of $78 per unit. Cool-IT’s cost to manufacture these
units is $51. The following schedule summarizes the production,
delivery, and payments in relation to the contract. Production
costs are recorded to inventory:
2020
2021
Total
Air conditioning units delivered
41,500
21,800
63,300
Production costs incurred
$2,116,500
$1,111,800
$3,228,300...
Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT...
Cool-IT Ltd. manufactures and sells air conditioning equipment
to retailers across North America. In 2020, Cool-IT signed a
two-year contract with BigMart Ltd. to supply it with 63,300 units
at a price of $78 per unit. Cool-IT’s cost to manufacture these
units is $51. The following schedule summarizes the production,
delivery, and payments in relation to the contract. Production
costs are recorded to inventory:
2020
2021
Total
Air conditioning units delivered
41,500
21,800
63,300
Production costs incurred
$2,116,500
$1,111,800
$3,228,300...
ANSWER PART C ( WITH FULL STEPS PLEASE) Application Problem 4-5A a1, b-c (Part Level Submission)...
ANSWER PART C ( WITH FULL STEPS PLEASE)
Application Problem 4-5A a1, b-c (Part Level Submission) Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 63,300 units at a price of $78 per unit. Cool-IT's cost to manufacture these units is $51. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory:...
Cool-It Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT...
Cool-It Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 57,100 units at a price of $77 per unit. Cool-IT's cost to manufacture these units is $54. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory: Air conditioning units delivered Production costs incurred Cash payments received 2020 2021 34,200 22,900 $1,846,800 $1,236,600...
is it possible to have the steps oplication Problem 4-5A al, b-c (Part Level Submission) pol-IT Ltd. manufactures and se...
is it possible to have the steps
oplication Problem 4-5A al, b-c (Part Level Submission) pol-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 64,800 units at a price of $72 per it. Cool-IT's cost to manufacture these units is $53. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory: r...
Application Problem 10-5A a, c-d (Part Level Submission) Sawada Insurance Ltd. issues bonds with a face...
Application Problem 10-5A a, c-d (Part Level Submission) Sawada Insurance Ltd. issues bonds with a face value of $100 million that mature in 12 years. The bonds carry a 6.6 % interest rate and are sold at 109.57 to yield 5.5 %. They pay interest semi-annually (a) Your answer is correct. Calculate the proceeds on issuance of the bonds, and show the journal entry to record the issuance (Credit account titles are automatically indented when amount is entered. Do not...
During 2020, Sunland Company started a construction job with a contract price of $1,590,000. The job...
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Application Problem 10-5A a, c-d (Part Level Submission) Sawada Insurance Ltd. issues bonds with a face...
Application Problem 10-5A a, c-d (Part Level Submission) Sawada Insurance Ltd. issues bonds with a face value of $100 million that mature in 12 years. The bonds carry a 6.6% interest rate and are sold at 109.57 to yield 5.5%. They pay interest semi-annually. (a) Calculate the proceeds on issuance of the bonds, and show the journal entry to record the issuance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
I want to know the answer for this.. Application Problem 8-12A a-b, cl-c2 (Part Level Submission)...
I want to know the answer for this..
Application Problem 8-12A a-b, cl-c2 (Part Level Submission) On March 1, 2019, Zephur Winds Ltd. purchased a machine for $63,000 by paying $21,000 down and issuing a note for the balance. The machine had an estimated useful life of nine years and an estimated residual value of $6,300. Zephur Winds uses the straight-line method of depreciation and has a December 31 year end. On October 30, 2021, the machine was sold for...
Problem 18-01 (Part Level Submission) Grouper Company sells tablet PCs combined with Internet service, which permits...
Problem 18-01 (Part Level Submission) Grouper Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. Grouper Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $491. The standalone selling price of the tablet is $246 (the cost to Grouper Company...
Cool-IT Ltd. manufactures and sells air conditioning equipment
to retailers across North America. In 2020, Cool-IT signed a
two-year contract with BigMart Ltd. to supply it with 63,300 units
at a price of $78 per unit. Cool-IT’s cost to manufacture these
units is $51. The following schedule summarizes the production,
delivery, and payments in relation to the contract. Production
costs are recorded to inventory:
2020
2021
Total
Air conditioning units delivered
41,500
21,800
63,300
Production costs incurred
$2,116,500
$1,111,800
$3,228,300...
Cool-IT Ltd. manufactures and sells air conditioning equipment
to retailers across North America. In 2020, Cool-IT signed a
two-year contract with BigMart Ltd. to supply it with 63,300 units
at a price of $78 per unit. Cool-IT’s cost to manufacture these
units is $51. The following schedule summarizes the production,
delivery, and payments in relation to the contract. Production
costs are recorded to inventory:
2020
2021
Total
Air conditioning units delivered
41,500
21,800
63,300
Production costs incurred
$2,116,500
$1,111,800
$3,228,300...
ANSWER PART C ( WITH FULL STEPS PLEASE)
Application Problem 4-5A a1, b-c (Part Level Submission) Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 63,300 units at a price of $78 per unit. Cool-IT's cost to manufacture these units is $51. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory:...
Cool-It Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 57,100 units at a price of $77 per unit. Cool-IT's cost to manufacture these units is $54. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory: Air conditioning units delivered Production costs incurred Cash payments received 2020 2021 34,200 22,900 $1,846,800 $1,236,600...
is it possible to have the steps
oplication Problem 4-5A al, b-c (Part Level Submission) pol-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 64,800 units at a price of $72 per it. Cool-IT's cost to manufacture these units is $53. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory: r...
Application Problem 10-5A a, c-d (Part Level Submission) Sawada Insurance Ltd. issues bonds with a face value of $100 million that mature in 12 years. The bonds carry a 6.6 % interest rate and are sold at 109.57 to yield 5.5 %. They pay interest semi-annually (a) Your answer is correct. Calculate the proceeds on issuance of the bonds, and show the journal entry to record the issuance (Credit account titles are automatically indented when amount is entered. Do not...
Application Problem 10-5A a, c-d (Part Level Submission) Sawada Insurance Ltd. issues bonds with a face value of $100 million that mature in 12 years. The bonds carry a 6.6% interest rate and are sold at 109.57 to yield 5.5%. They pay interest semi-annually. (a) Calculate the proceeds on issuance of the bonds, and show the journal entry to record the issuance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
I want to know the answer for this..
Application Problem 8-12A a-b, cl-c2 (Part Level Submission) On March 1, 2019, Zephur Winds Ltd. purchased a machine for $63,000 by paying $21,000 down and issuing a note for the balance. The machine had an estimated useful life of nine years and an estimated residual value of $6,300. Zephur Winds uses the straight-line method of depreciation and has a December 31 year end. On October 30, 2021, the machine was sold for...
Problem 18-01 (Part Level Submission) Grouper Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. Grouper Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $491. The standalone selling price of the tablet is $246 (the cost to Grouper Company...
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