Question
In: Accounting
On April 1, 2018, JS Co. sold equipment to JL Co. Service in exchange for a...
On April 1, 2018, JS Co. sold equipment to JL Co. Service in exchange for a zero-interest bearing note with a face value of €109,000, with payment due in 12 months. The cost of goods sold is € 58,000. The fair value of the equipment on the date of sale was €100,000.
A- Record the entry showing how much revenue should JS Co. record on April 1, 2018.
B- Record the entry showing how much revenue should it report related to this transaction on December 31, 2018
Solutions
Expert Solution
Required A
| Particulars | Debit | Credit |
| Notes Receivable | $ 109,000 | |
| Sales Revenue | $ 100,000 | |
| Unearned Revenue | $ 9,000 |
Thus JS Co. should record a revenue of $100,000 on April 1, 2018.
Required B
| Particulars | Debit | Credit |
| Unearned Revenue | $ 6,750 | |
| Interest income | $ 6,750 |
Thus JS Co. should record a revenue of $6750 on December 31, 2018.
ekkarill92 answered 1 year agoRelated Solutions
On April 1, 2018, JS Co. sold equipment to JL Co. Service in exchange for a...
On April 1, 2018, JS Co. sold equipment to JL Co. Service in
exchange for a zerointerest bearing note with a face value of
€109,000, with payment due in 12 months. The cost of goods sold is
€ 58,000. The fair value of the equipment on the date of sale was
€100,000.
A- Record the entry showing how much revenue should JS Co.
record on April 1, 2018.
B- Record the entry showing how much revenue should it report
related...
On January 1, 2019, Farmer Co. sold product to a customer in exchange for a four...
On January 1, 2019, Farmer Co. sold product to a customer in
exchange for a four year $50,000 promissory note with an annual
interest rate of 4%. Interest only payments are due SEMI-ANNUALLY,
beginning on June 30, 2019. The market rate for an equivalent loan
to this customer would have been 6%*. Farmer Co. uses IFRS, has a
Dec 31 year end, and prepares adjusting entries annually.
Required: a) Calculate the amount of revenue to be recorded on
January 1st...
On January 1, 2011, Crabb & Co. sold land to Chiles, Inc. in exchange for a...
On January 1, 2011, Crabb & Co. sold land to Chiles, Inc. in
exchange for a note with a maturity value of $500,000. The note is
due December 31, 2013 and interest is owed each December 31 at a
rate of 6%. Chiles’ market rate of borrowing is 12%. Crabb
originally purchased the land for $80,000 in 1978.
Answer the following. Show your work.
1. Was the note issued at a discount or a premium?
2. What is the fair...
The cost of goods sold for the Immaculate Corporation for the month of April 2018 was...
The cost of goods sold for the Immaculate Corporation for the
month of April 2018 was $450,000. Work-in-process inventory at the
end of April was 95 percent of the work-in-process inventory at the
beginning of the month.
Overhead is 80 percent of the direct labor cost. During the
month, $110,000 of direct materials were purchased. Revenues for
Immaculate were $600,000, and the selling and administrative costs
were $70,000.
Other information about Immaculate's inventories and production
for April was as follows:...
April 1 Nozomi invested $37,000 cash and computer equipment worth $25,000 in the company in exchange...
April
1
Nozomi invested
$37,000 cash and computer equipment worth $25,000 in the company in
exchange for common stock.
2
The company rented
furnished office space by paying $2,000 cash for the first month’s
(April) rent.
3
The company
purchased $1,300 of office supplies for cash.
10
The company paid
$2,500 cash for the premium on a 12-month insurance policy.
Coverage begins on April 11.
14
The company paid
$1,800 cash for two weeks' salaries earned by employees.
24
The...
HMC sold equipment December 5, 2018 for $2,000. It originally purchased the equipment February 1, 2010...
HMC sold equipment December 5, 2018 for $2,000. It originally
purchased the equipment February 1, 2010 for $12,000. The equipment
is fully depreciated for book and tax purposes. For tax purposes,
the entire gain is recaptured as ordinary income under Section
1245.
Complete Tax forms 4562(Depreciation and Amortization) and
4797(Sale of business property) for the following transaction.
Please include all supporting forms used in your calculation. The
forms can be found on the IRS's website. I have no way of...
- On April 17, 2018 the exchange rate between the Canadian dollar and the US dollars...
- On April 17, 2018 the exchange rate between the Canadian
dollar and the US dollars was 1 CAD = 0.796 USD. On April 5, 2019
the exchange rate was 1 CAD = 0.780 USD. Did the Canadian dollar
appreciate or depreciate and by what percent? (1 point)
- Find the exchange rate in terms of US dollars per British
pound if on April 5, 2019 the exchange rate between the US dollar
and the Mexican peso was 1 USD...
on April 1 2018, company sold 10,000 bonds ($1,000 face value) at 11% semi-annually. they are...
on April 1 2018, company sold 10,000 bonds ($1,000 face value)
at 11% semi-annually. they are due April 1 2028.
proceeds from the bonds were 9,156,946 and their coupon dates
are april 1 and october 1
on april 1 2020 , the company bough back 6,000 bonds for
5,331,000 cash.
- prepare journal entries for the bonds from sale (april 1, 2018
to the end of year 2020 (12/31/20)
- what are the 12/31/20 balances in the related bonds, discount,...
On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $210,000 in...
On January 1, 2018, Ackerman sold equipment to Brannigan (a
wholly owned subsidiary) for $210,000 in cash. The equipment had
originally cost $189,000 but had a book value of only $115,500 when
transferred. On that date, the equipment had a five-year remaining
life. Depreciation expense is computed using the straight-line
method.
Ackerman reported $310,000 in net income in 2018 (not including
any investment income) while Brannigan reported $101,300. Ackerman
attributed any excess acquisition-date fair value to Brannigan's
unpatented technology, which...
ABC Company sold equipment on October 1, 2018, to XYZ Company for £1,000,000. It agrees to...
ABC Company sold equipment on October 1, 2018, to XYZ Company
for £1,000,000. It agrees to repurchase this equipment in July
2019, for a price of £1,100,000. The proper accounting treatment
for this transaction based on
Select one:
a. relevance
b. going concern
c. comparability
d. substance over form
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1. Consider the following nuclides: &
- In general, teams can be described three ways. Name and define each.
- JAVASCRIPT: Please create an array of student names and another array of student grades. - Create...
- Topic - Construction: Structural, loads, tension 1.) Explain why pure tension members are the most efficient...
- Procter and Gamble (PG) paid an annual dividend of $ 1.62$1.62 in 2009. You expect PG...
- locate a recent case of online child pornography. Write a summary of the incident and describe...
- #Python 5. Write function called evaluate() that evaluates the following Python expressions or assignments as specified:...
ADVERTISEMENT