Question

Chapter 1 Revenue and Expense Recognition ach date/transaction below, create the relevant journal entries INSTRUCTIONS: For each date/transaction below, create the relevant for Inguinal, Blastech, and Screwage. Do the entries for these entities are enti entities one entity at a Be able to justify why you recognized any revenue or expense. For some date where is actually no recordable transaction. All these companies have 12/31 and entities, there is actually no recordable transa year ends. Inguinal Ballistics Inc., a weapon system retailer, orders 5 Blastech Monitors for their retail inventory from Blastech Corp. on November 1, 2019. The monitors cost a total of $34.000 and arrive at Inguinal, along with a bill from Blastech, on December 2, 2019 Inguinal pays Blastech $34,000 on January 10, 2020. The monitors cost Blastech $3.780 each, to build and are sold out of Blastech's finished goods inventory. Inguinal receives a prepayment of $12,000 from Screwage Yachts Co. as a deposit on 2 of the Blastech Monitors on December 1, 2019. The prepayment to Inguinal and the deposit for Blastech represents 25% of the total selling price of the 2 monitors. Screwage is ordering the monitors for their raw material inventory; they plan on installing them as part of weapon systems installed on the yachts they build. During the month of December 2019, Inguinal incurred wage expense of $48,000, of which $40,000 is paid in December with remainder to be paid on January 4, 2020. Also, of the $40,000 paid in December, $6,200 was paid to techs who customized the two monitors ordered by Screwage.** Inguinal delivers the 2 monitors and a bill to Screwage on December 16, 2019. Screwage pays the remaining 75% for the monitors on January 15, 2020. The monitors became part of Screwage's manufacturing arm, to help align and install new weapon systems on yachts. Inguinal's total wage payment on January 4th was for $10,400. On Screwage's books, the debit for the payment is to Deposits, a current asset. A deposit represents the Prepaid portion of an as-yet unreceived asset. That cost will be folded into inventory as part of the total cost of the inventory. consistent with the amplified version of historical cost, these expenditures are capitalized as part e cost of the two monitors in Inguinal's retail inventory because they are costs necessary to get a inventory in its condition and location to be sold.

Answer 1

Inguinal 4.34000 4 DEC-2,2-019 $3400D Blastech Loop Revenue is recognised whom Goods are delivered Dec.2.2019 Inguinal Ballistics INC AK-B TO Cales All Purchase All or to blastech Corp. ALL $300 All - Dor 4 34000 cork Blastech 734000 Jan 10,2050 t or $1890010 $18.900 o To Cash All Dec 22019 Con of Good Sold Alc - To Inventory Ale Dec 2014 $34000 Benewage yachts co Alcbr & 12000 to Admowice Received Al Jan 10, 2020 Cash Alm & 34000 To Inguinal Ballistics inc Ak Dec2019 & 46,000 I wages Alc- 887 48000 To cash All to unpaid wagles Al & 8000 Dec 16 2019 screwage yachts Coo &48000 Purchare Alc Hoce 16 o to Inginal Ballistics INC AK $48000 Screwage TO Yachts COALC -Dr 848000 Sales All $ 48000 a 1000 $12000 Dec-1-2019 Cash Alc o r $12000 to scoewage yacts Co. AIC $12000 Dec-12019 Inguinal Ballistics Inc Al-Dr To Cash AlC $36000 $36000 Jan 15, 2010 cash Al - D o TO Scoowage yacts Co. All $360 Ballistics INC ALL cash ale Inguinal to jor 15,2010 $3600 - Jon 4 2000 wages Al - Dr 2400 unpond wages Alc-tor 8000 to Cash Alc 10yoo