Question

Question 1- part one: On December 18, Intel receives $257,000 from a customer toward a cash sale of $2.57 million for computer chips to be completed on January 23. The computer chips had a total production cost of $1.57 million. What journal entries should Intel record on December 18 and January 23? Assume Intel uses the perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) This should have three journal entries.

part two:

  
1. Environmental Printing is being sued for $9.3 million by Addamax. Plaintiff alleges that the defendants formed an unlawful joint venture and drove it out of business. The case is expected to go to trial later this year. The likelihood of payment is reasonably possible.

2. Environmental Printing is the plaintiff in an $7.3 million lawsuit filed against a competitor in the high-end color-printer market. Environmental Printing expects to win the case and be awarded between $4.8 and $7.3 million.

3. Environmental Printing recently became aware of a design flaw in one of its ink-jet printers. A product recall appears probable. Such an action would likely cost the company between $330,000 and $730,000.
  
Required:
Record any amounts as a result of each of these contingencies. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in dollars, not in millions (i.e., $5.5 million should be entered as 5,500,000).) This should have three journal entries.

Answer 1

Question 1=Part 1:- prepare journal entries

Date	Account title and explanation	Debit ($)	Credit ($)
Dec.18 (a)	Cash	257,000
	To unearned revenue		257,000
	(To record receipt of cash)
Jan.23 (b)	cash (bal.)	2,313,000
	Unearned revenue	257,000
	To sales		2,570,000
	(To record sales received)
Jan.23 (c)	cost of goods sold	1,570,000
	To inventory		1,570,000
	(To record cost of goods sold)