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D E A B с Problem 6 (sale with time value of money, IR] On January...
B E חד 5 10 11 12 14 A с D 1 Problem 3 [retroactive sales...
B E חד 5 10 11 12 14 A с D 1 Problem 3 [retroactive sales discount] 2 On March 1, 2020, ABC contracted with Best Buy to provide 1,000 televisions at a contracted price of 3 $450/cach. Delivery occurred on March 3, 2020. The sale was on account, and Best Buy made cash 4 payment 30 days after delivery. 6 The sale was subject to a retroactive volume discount whereby the per-unit sales price is reduced if total units...
Accounts: Cash, Interest Revenue, Sales Revenue, Notes Receivable, Discount on Note Receivable Problem 6 (sale with...
Accounts: Cash, Interest Revenue, Sales Revenue, Notes
Receivable, Discount on Note Receivable
Problem 6 (sale with time value of money, IR On January 1, 2020, ABC sold and delivered a product to XYZ. ABC allows XYZ to delay payment for twelve months, at which time XYZ will pay ABC $20,000. ABC deems the financing component of the transaction to be significant and decides that an applicable interest rate is 10%. 1. Prepare the entry made by ABC on January 1,...
B с E F G А D On August 1, 2020, ABC contracted with XYZ to...
B с E F G А D On August 1, 2020, ABC contracted with XYZ to provide XYZ with the following products for a total bundled price of $400,000. Product 1 (electronic item) - stand-alone selling price is $88,000 Product 2 (electronic item) - stand-alone selling price is $198,000 Product 3 (20 month service contract*) - stand-alone selling price is $154,000. On August 1, payment is made in cash and products 1 and 2 are delivered to the customer. The...
IU с D E А B Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles...
IU с D E А B Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles at an agreed-upon price of $38,000. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $41,800 on December 31, 2021. Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 10% Required: 1. Prepare Artic Cat's journal entries at January 1,...
Blue Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020....
Blue Company sells goods to Danone Inc. by accepting a note
receivable on January 2, 2020. The goods have a sales price of
$551,000 (cost of $480,000). The terms are net 30. If Danone pays
within 5 days, however, it receives a cash discount of $11,000.
Past history indicates that the cash discount will be taken. On
January 28, 2020, Danone makes payment to Blue for the full sales
price.
Prepare the journal entry(ies) to record the sale and related...
On January 1, 2020, Stellar Company purchased 12% bonds, having a maturity value of $312,000 for...
On January 1, 2020, Stellar Company purchased 12% bonds, having
a maturity value of $312,000 for $335,654.22. The bonds provide the
bondholders with a 10% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Stellar Company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are classified
as available-for-sale category. The fair value of the bonds at
December 31 of each year-end is as follows....
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off...
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,500 account of a customer, C. Green. On March 9, it receives a $1,000 payment from Green. 1. Prepare the journal entry for January 31 2. Prepare the journal entries for March 9; assume no additional money is expected from Green. View transaction list View transaction list Journal entry worksheet 1 2 3 Record the write-off of Green's $1,500 account Note: Enter debits...
Acme Cell Phones had a debit balance in Accounts Receivable of $100,000 on January 1, 2020....
Acme Cell Phones had a debit balance in Accounts Receivable of $100,000 on January 1, 2020. On that date, Acme sold $80,000 of merchandise to Brodie Trucking Company on account. Ignore cost of goods sold. On January 28, Brodie paid only $56,000 of the account receivable. After repeated attempts to collect, Acme finally wrote off its accounts receivable from Brodie on May 31. On December 1, Acme received Brodie's cheque for $24,000 with a note apologizing for the late payment...
Exercise 14-34 Troubled debt restructuring; modification of terms (Appendix B) At January 1, 2018, Brainard Industries,...
Exercise 14-34 Troubled debt restructuring; modification of terms (Appendix B) At January 1, 2018, Brainard Industries, Inc., owed Second BancCorp $14 million under a 10% note due December 31, 2020. Interest was paid last on December 31, 2016. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year just ended. b. Reduce the remaining two years' interest payments...
нер Save Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it...
нер Save Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,300 account of a customer, C. Green. On March 9, it receives a $800 payment from Green 1. Prepare the journal entry or entries for January 31 2. Prepare the journal entry or entries for March 9; assume no additional money is expected from Green 49:32 View transaction list Journal entry worksheet < 2 3 Record the write-off of Green's $1,300...
B E חד 5 10 11 12 14 A с D 1 Problem 3 [retroactive sales discount] 2 On March 1, 2020, ABC contracted with Best Buy to provide 1,000 televisions at a contracted price of 3 $450/cach. Delivery occurred on March 3, 2020. The sale was on account, and Best Buy made cash 4 payment 30 days after delivery. 6 The sale was subject to a retroactive volume discount whereby the per-unit sales price is reduced if total units...
Accounts: Cash, Interest Revenue, Sales Revenue, Notes
Receivable, Discount on Note Receivable
Problem 6 (sale with time value of money, IR On January 1, 2020, ABC sold and delivered a product to XYZ. ABC allows XYZ to delay payment for twelve months, at which time XYZ will pay ABC $20,000. ABC deems the financing component of the transaction to be significant and decides that an applicable interest rate is 10%. 1. Prepare the entry made by ABC on January 1,...
B с E F G А D On August 1, 2020, ABC contracted with XYZ to provide XYZ with the following products for a total bundled price of $400,000. Product 1 (electronic item) - stand-alone selling price is $88,000 Product 2 (electronic item) - stand-alone selling price is $198,000 Product 3 (20 month service contract*) - stand-alone selling price is $154,000. On August 1, payment is made in cash and products 1 and 2 are delivered to the customer. The...
IU с D E А B Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles at an agreed-upon price of $38,000. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $41,800 on December 31, 2021. Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 10% Required: 1. Prepare Artic Cat's journal entries at January 1,...
Blue Company sells goods to Danone Inc. by accepting a note
receivable on January 2, 2020. The goods have a sales price of
$551,000 (cost of $480,000). The terms are net 30. If Danone pays
within 5 days, however, it receives a cash discount of $11,000.
Past history indicates that the cash discount will be taken. On
January 28, 2020, Danone makes payment to Blue for the full sales
price.
Prepare the journal entry(ies) to record the sale and related...
On January 1, 2020, Stellar Company purchased 12% bonds, having
a maturity value of $312,000 for $335,654.22. The bonds provide the
bondholders with a 10% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Stellar Company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are classified
as available-for-sale category. The fair value of the bonds at
December 31 of each year-end is as follows....
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,500 account of a customer, C. Green. On March 9, it receives a $1,000 payment from Green. 1. Prepare the journal entry for January 31 2. Prepare the journal entries for March 9; assume no additional money is expected from Green. View transaction list View transaction list Journal entry worksheet 1 2 3 Record the write-off of Green's $1,500 account Note: Enter debits...
Acme Cell Phones had a debit balance in Accounts Receivable of $100,000 on January 1, 2020. On that date, Acme sold $80,000 of merchandise to Brodie Trucking Company on account. Ignore cost of goods sold. On January 28, Brodie paid only $56,000 of the account receivable. After repeated attempts to collect, Acme finally wrote off its accounts receivable from Brodie on May 31. On December 1, Acme received Brodie's cheque for $24,000 with a note apologizing for the late payment...
Exercise 14-34 Troubled debt restructuring; modification of terms (Appendix B) At January 1, 2018, Brainard Industries, Inc., owed Second BancCorp $14 million under a 10% note due December 31, 2020. Interest was paid last on December 31, 2016. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year just ended. b. Reduce the remaining two years' interest payments...
нер Save Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,300 account of a customer, C. Green. On March 9, it receives a $800 payment from Green 1. Prepare the journal entry or entries for January 31 2. Prepare the journal entry or entries for March 9; assume no additional money is expected from Green 49:32 View transaction list Journal entry worksheet < 2 3 Record the write-off of Green's $1,300...
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