Rocky Guide Service provides guided 1–5 day hiking tours
throughout the Rocky Mountains. Wilderness Tours hires Rocky to
lead various tours that Wilderness sells. Rocky receives $1,400 per
tour day, and shortly after the end of each month Rocky learns
whether it will receive a $140 bonus per tour day it guided during
the previous month if its service during that month received an
average evaluation of "excellent" by Wilderness customers. The
$1,400 per day and any bonus due are paid in one lump payment
shortly after the end of each month.
Rocky bases estimates of variable consideration on the expected
value it expects to receive.
Required:
1. to 3. Prepare the journal entries to record the
transactions above. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)
Please correct my errors and show me your work. Thank you!
Answer:
No | Date | General Journal | Debit | Credit |
1 | 15-Jul | Accounts receivable (10*1400) | 14,000 | |
Bonus receivable (10*140*0.2) | 280 | |||
Service revenue | 14,000 | |||
2 | 31-Jul | Accounts receivable (15*1400) | 21,000 | |
Bonus receivable (25*140*0.7-280) | 3,500 | |||
Service revenue | 24,500 | |||
3 | 5-Aug | Cash (14000+21000) | 35,000 | |
Accounts receivable | 35,000 | |||
4 | 5-Aug | Service revenue | 4,500 | |
Bonus receivable (280+2170) | 4,500 |
Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires...
Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,800 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $280 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $2,800 per day and any bonus due are...
Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $3,000 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $300 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $3,000 per day and any bonus due are...
Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,800 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $280 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $2,800 per day and any bonus due are...
Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,800 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $280 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $2,800 per day and any bonus due are...
Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,600 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $160 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $1,600 per day and any bonus due are...
Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,000 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $100 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $1,000 per day and any bonus due are...
Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,400 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $140 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $1,400 per day and any bonus due are...
Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,300 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $130 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $1,300 per day and any bonus due are...
Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,900 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $290 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of excellent" by Wilderness customers. The $2,900 per day and any bonus due are...
Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,100 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $210 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of excellent" by Wilderness customers. The $2,100 per day and any bonus due are...