Questions
Webster Company produces 35,000 units of product A, 30,000 units of product B, and 14,500 units...

Webster Company produces 35,000 units of product A, 30,000 units of product B, and 14,500 units of product C from the same manufacturing process at a cost of $385,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $40 for A, $20 for B, and $2 for C. None of the products requires separable processing. Of the units produced, Webster Company sells 28,000 units of A, 29,000 units of B, and 14,500 units of C. The firm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory. Required: 1. What is the value of the ending inventory of product A? 2. What is the value of the ending inventory of product B?

In: Accounting

How can you apply the Bill of Rights to modern situations that the founders could not...

  • How can you apply the Bill of Rights to modern situations that the founders could not have considered?

In: Accounting

On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a...

On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Required:

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.
2. Journalize the entries to record the following:*
a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)
b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)
3. Determine the total interest expense for Year 1.
4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?
5. Compute the price of $37,282,062 received for the bonds by using the present value tables. (Round to the nearest dollar.)
*Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Danzer Industries Inc.
General Ledger
ASSETS
110 Cash
111 Petty Cash
121 Accounts Receivable
122 Allowance for Doubtful Accounts
126 Interest Receivable
127 Notes Receivable
131 Merchandise Inventory
141 Office Supplies
142 Store Supplies
151 Prepaid Insurance
191 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
221 Salaries Payable
231 Sales Tax Payable
232 Interest Payable
241 Notes Payable
251 Bonds Payable
252 Discount on Bonds Payable
253 Premium on Bonds Payable
EQUITY
311 Common Stock
312 Paid-In Capital in Excess of Par-Common Stock
315 Treasury Stock
321 Preferred Stock
322 Paid-In Capital in Excess of Par-Preferred Stock
331 Paid-In Capital from Sale of Treasury Stock
340 Retained Earnings
351 Cash Dividends
352 Stock Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
611 Gain on Redemption of Bonds
EXPENSES
510 Cost of Merchandise Sold
515 Credit Card Expense
516 Cash Short and Over
521 Sales Salaries Expense
522 Office Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Repairs Expense
534 Selling Expenses
535 Rent Expense
536 Insurance Expense
537 Office Supplies Expense
538 Store Supplies Expense
541 Bad Debt Expense
561 Depreciation Expense-Store Equipment
562 Depreciation Expense-Office Equipment
590 Miscellaneous Expense
710 Interest Expense
711 Loss on Redemption of Bonds

!!!!!!!!!!USE PRESENT VALUE TABLES!!!!!!!!!!

1. and 2. Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

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DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

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3. Determine the total interest expense for Year 1.

Amount: $ __________________

4. Compute the price of $37,282,062 received for the bonds by using the present value tables. (Round to the nearest dollar.)

Present value of the face amount $                                                     
Present value of the semiannual interest payments
Price received for the bonds $

In: Accounting

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash $ 80,000 Accounts receivable 135,000 Inventory 41,250 Plant and equipment, net of depreciation 211,000 Total assets $ 467,250 Liabilities and Stockholders’ Equity Accounts payable $ 72,000 Common stock 345,000 Retained earnings 50,250 Total liabilities and stockholders’ equity $ 467,250 Beech’s managers have made the following additional assumptions and estimates: 1.Estimated sales for July, August, September, and October will be $220,000, $240,000, $230,000, and $250,000, respectively. 2.All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. 3.Each month’s ending inventory must equal 25% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July. 4.Monthly selling and administrative expenses are always $40,000. Each month $6,000 of this total amount is depreciation expense and the remaining $34,000 relates to expenses that are paid in the month they are incurred. 5.The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30. Required: 1. Prepare a schedule of expected cash collections for July, August, and September. 2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. 2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. 3. Prepare an income statement for the quarter ended September 30. 4. Prepare a balance sheet as of September 30. Loading...

In: Accounting

On December 31, 2017, Vernon Vacations Inc. reported the following shareholders’ equity: Preferred shares, unlimited authorized,...

On December 31, 2017, Vernon Vacations Inc. reported the following shareholders’ equity:

  • Preferred shares, unlimited authorized, $0.50 cumulative dividend, 200,000 shares

issued and outstanding, dividends have been paid up to date                       $ 400,000

  • Common shares, unlimited authorized, 400,000 shares issued and

outstanding                                                                                                      1,000,000

  • Contributed surplus from past retirements of common shares                             70,000
  • Retained earnings                                                                                              1,500,000
  • Accumulated other comprehensive income                                                           30,000

total: $3,000,000

During 2018, the company reported the following transactions and events:

  • On January 1, the company reacquired and retired 1,000 preferred shares at a cost of $6 per share.
  • On April 30, the company reacquired and retired 20,000 common shares at a cost of $5 per share.
  • On October 31, when the common shares were trading for $7 per share, the company declared and distributed a 10% stock dividend on its common shares.
  • On December 15, the company declared a dividend of $1 per common share plus the current year’s dividend on the preferred shares. Both dividends were to be paid on January 1, 2019, to shareholders of record on January 5, 2019.
  • The company reported net income for the year of $850,000 and negative other comprehensive income for the year of $50,000.

Required:

  1. Provide journal entries to record all the transactions set out above.
  2. Prepare, in good form, the shareholder’s equity section of the company’s statement of financial position as at December 31, 2018.

In: Accounting

The minimum word count for any assignment is 2000-2500 words unless it is mentioned otherwise in...

The minimum word count for any assignment is 2000-2500 words unless it is mentioned otherwise in the assignment instructions or task by task. You could lose marks if you write 10% more or less than this.


Assignments will be reviewed only if they are completed with all the tasks/questions. Please do not send each task/question separately.


All documents will be checked for plagiarism. Any report found to be plagiarised for more than 15% would be rejected immediately.


Make sure to insert correct in-text citations when drafting an assignment and a list of references as per the Harvard Referencing Style is to be provided at the end of the whole assignment. (Not end of each task)


All assignments will be sent for review and until the assignment status shows “Completed”, kindly keep checking for feedback and do the needful accordingly.


Assignments should be saved as: Programme Name _ (Candidate Full Name) _ (Candidate Code)_(Unit Abbreviation). i.e. MBA_ John Smith_00123456_ ABRM


Answer only one part from all of the questions below:

Question 2:

1. Critically discuss financial reporting and analysis. And explain the following:

* The GAAP ( Generally Accepted Accounting Principles)
* The IFRS ( International Financial Reporting Standards)

In: Accounting

The following information is available from the accounting records of DeWitt Engineering Ltd. for the year...

The following information is available from the accounting records of DeWitt Engineering Ltd. for the year ended June 30, 2021:

Fee discounts and allowances $26,000
Fee revenue 1,560,000
Interest revenue 6,000
Other operating expenses 590,000
Salaries expense 750,000
Gain on fair value adjustments on equity investments 31,000


Instructions
Prepare a combined Statement of Income and Comprehensive Income for the year ended June 30, 2021. The company has a 30% income tax rate and records gains and losses on equity investments as other comprehensive income.

In: Accounting

Fender Construction Company receives a contract to construct a building over a period of 3 years...

Fender Construction Company receives a contract to construct a building over a period of 3 years for a price of $700,000. The contract represents a single performance obligation that will be satisfied over time. Information relating to the performance of the contract is summarized as follows:

2017

2018

2019
Construction costs incurred during the year $150,000 $242,000 $168,000
Estimated costs to complete 350,000 168,000 —
Billings during the year 120,000 250,000 330,000
Collections during the year 100,000 260,000 340,000

Required:

1. Prepare journal entries for all 3 years.
2. Assume that the contract represents a single performance obligation that will be satisfied at a point in time. Prepare journal entries for all 3 years.
CHART OF ACCOUNTS
Fender Construction Company
General Ledger
ASSETS
111 Cash
121 Accounts Receivable
141 Inventory
152 Prepaid Insurance
155 Construction in Progress
156 Partial Billings
181 Equipment
198 Accumulated Depreciation
LIABILITIES
211 Accounts Payable
231 Salaries Payable
250 Unearned Revenue
261 Income Taxes Payable
EQUITY
311 Common Stock
331 Retained Earnings
REVENUE
420 Construction Revenue
EXPENSES
500 Construction Expense
511 Insurance Expense
512 Utilities Expense
521 Salaries Expense
532 Bad Debt Expense
540 Interest Expense
541 Depreciation Expense
559 Miscellaneous Expenses
910 Income Tax Expense
Assume the contract represents a single performance obligation that will be satisfied over time. Prepare journal entries on December 31 for all 3 years
1. to record costs of construction for cash.
2. to record partial billings.
3. to record collections on account.
4. to record gross profit recognized.
5. to close out construction accounts in 2019.
Additional Instruction

PAGE 2017

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Assume that the contract represents a single performance obligation that will be satisfied at a point in time. Prepare journal entries on December 31 for all 3 years
1. to record costs of construction for cash.
2. to record partial billings.
3. to record collections.
4. to recognize revenue at completion on 2019.
5. to recognize expense at completion on 2019.

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In: Accounting

GL0701 - Based on Problem 7-1A LO P1 Perez Company completes these transactions and events during...

GL0701 - Based on Problem 7-1A LO P1

Perez Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).

Mar. 1 Purchased $44,500 of merchandise from Parker Industries, invoice dated March 1, terms 2/15, n/30.
Mar. 2 Sold merchandise on credit to Ryan Co., Invoice No. 854, for $27,600 (cost is $17,000).
Mar. 3 Purchased $1,300 of office supplies on credit from Perry Company, invoice dated March 3, terms n/10 EOM.
Mar. 3 Sold merchandise on credit to Li Zhang, Invoice No. 855, for $19,000 (cost is $11,400).
Mar. 6 Borrowed $100,000 cash from First Bank by signing a long-term note payable.
Mar. 9 Purchased $22,250 of office equipment on credit from Brown Supply, invoice dated March 9, terms n/10 EOM.
Mar. 10 Sold merchandise on credit to Maria Gonzalez, Invoice No. 856, for $15,200 (cost is $9,100).
Mar. 12 Received payment from Ryan Co. for the March 2 sale less the discount.
Mar. 13 Sent Parker Industries Check No. 416 in payment of the March 1 invoice less the discount.
Mar. 13 Received payment from Li Zhang for the March 3 sale less the discount.
Mar. 14 Purchased $39,800 of merchandise from the Walker Co., invoice dated March 13, terms 2/10, n/30.
Mar. 15 Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $20,100. Cashed the check and paid the employees.
Mar. 15 Cash sales for the first half of the month are $43,000 (cost is $25,800). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)
Mar. 16 Purchased $2,000 of store supplies on credit from Perry Company, invoice dated March 16, terms n/10 EOM.
Mar. 17 Received a $3,800 credit memorandum from Walker Co. for the return of unsatisfactory merchandise purchased on March 14.
Mar. 19 Received a $3,340 credit memorandum from Brown Supply for office equipment received on March 9 and returned for credit.
Mar. 20 Received payment from Maria Gonzalez for the sale of March 10 less the discount.
Mar. 23 Issued Check No. 418 to Walker Co. in payment of the invoice of March 13 less the March 17 return and the discount.
Mar. 27 Sold merchandise on credit to Maria Gonzalez, Invoice No. 857, for $33,000 (cost is $19,800).
Mar. 28 Sold merchandise on credit to Li Zhang, Invoice No. 858, for $11,400 (cost is $6,800).
Mar. 31 Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $20,100. Cashed the check and paid the employees.
Mar. 31 Cash sales for the last half of the month are $38,700 (cost is $23,200).

For this question you must post to the General Journal, General Ledger, Trial Balance, Cash Rec Journal, Cash Disb Journal, Purchases Journal, and Sales Journal.

In: Accounting

Problem 7-3A Special journals, subsidiary ledgers, and schedule of accounts payable-perpetual LO C3, P1, P2 Wiset...

Problem 7-3A Special journals, subsidiary ledgers, and schedule of accounts payable-perpetual LO C3, P1, P2

Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).

Apr. 2 Purchased $15,800 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60.
3 Sold merchandise on credit to Page Alistair, Invoice No. 760, for $5,600 (cost is $2,800).
3 Purchased $1,590 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM.
4 Issued Check No. 587 to World View for advertising expense, $850.
5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,300 (cost is $6,600).
6 Received an $70 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.
9 Purchased $10,850 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM.
11 Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $12,200 (cost is $6,800).
12 Issued Check No. 588 to Noth Company in payment of its April 2 invoice less the discount.
13 Received payment from Page Alistair for the April 3 sale less the discount.
13 Sold $6,300 of merchandise on credit to Page Alistair (cost is $3,300), Invoice No. 763.
14 Received payment from Paula Kohr for the April 5 sale less the discount.
16 Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $10,200. Cashed the check and paid employees.
16 Cash sales for the first half of the month are $52,040 (cost is $44,400). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)
17 Purchased $13,100 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30.
18 Borrowed $64,000 cash from First State Bank by signing a long-term note payable.
20 Received payment from Nic Nelson for the April 11 sale less the discount.
20 Purchased $1,160 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM.
23 Received a $900 credit memorandum from Grant Company for the return of defective merchandise received on April 17.
23 Received payment from Page Alistair for the April 13 sale less the discount.
25 Purchased $11,775 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60.
26 Issued Check No. 590 to Grant Company in payment of its April 17 invoice less the return and the discount.
27 Sold $3,170 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,690).
27 Sold $8,600 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,955).
30 Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $10,200.
30 Cash sales for the last half of the month are $72,500 (cost is $59,600).


Assume that Wiset Co. uses the perpetual inventory system.

     
Required:

1-a. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the purchases journal.
1-b. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the cash disbursements journal.
1-c. Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the general journal.
2 & 3. Enter the March 31 balances of Cash ($84,000), Inventory ($130,000), Long-Term Notes Payable ($114,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Inc.
4-a. Prepare a trial balance.
4-b. Prepare a schedule of accounts payable.

Review the April transactions of Wiset Company and enter those transactions that should be journalized in the purchases journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the cash disbursements journal. Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the general journal. Enter the March 31 balances of Cash ($84,000), Inventory ($130,000), Long-Term Notes Payable ($114,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Inc. Prepare a trial balance. Prepare a schedule of accounts payable.

In: Accounting

The accountant for Becker Company wants to develop a balance sheet as of December 31, 2016....

The accountant for Becker Company wants to develop a balance sheet as of December 31, 2016. A review of the asset records has revealed the following information:

a. Asset A was purchased on July 1, 2014, for $40,000 and has been depreciated on the straight-line basis using an estimated life of six years and a residual value of $4,000.
b. Asset B was purchased on January 1, 2015, for $79,200. The straight-line method has been used for depreciation purposes. Originally, the estimated life of the asset was projected to be six years with a residual value of $7,200; however, at the beginning of 2016, the accountant learned that the remaining life of the asset was only three years with a residual value of $2,400.
c. Asset C was purchased on January 1, 2015, for $58,000. The double-declining-balance method has been used for depreciation purposes, with a four-year life and a residual value estimate of $5,000.

Required:

1. Assume that these assets represent pieces of equipment. Calculate the acquisition cost, accumulated depreciation, and book value of each asset as of December 31, 2016.
2. How would the assets appear on the balance sheet on December 31, 2016?
3. Assume that Becker Company sold Asset B on January 2, 2017, for $32,600. Calculate the amount of the resulting gain or loss and prepare the journal entry for the sale. Where would the gain or loss appear on the income statement?

The accountant for Becker Company wants to develop a balance sheet as of December 31, 2016. A review of the asset records has revealed the following information:

a. Asset A was purchased on July 1, 2014, for $40,000 and has been depreciated on the straight-line basis using an estimated life of six years and a residual value of $4,000.
b. Asset B was purchased on January 1, 2015, for $79,200. The straight-line method has been used for depreciation purposes. Originally, the estimated life of the asset was projected to be six years with a residual value of $7,200; however, at the beginning of 2016, the accountant learned that the remaining life of the asset was only three years with a residual value of $2,400.
c. Asset C was purchased on January 1, 2015, for $58,000. The double-declining-balance method has been used for depreciation purposes, with a four-year life and a residual value estimate of $5,000.

Required:

1. Assume that these assets represent pieces of equipment. Calculate the acquisition cost, accumulated depreciation, and book value of each asset as of December 31, 2016.
2. How would the assets appear on the balance sheet on December 31, 2016?
3. Assume that Becker Company sold Asset B on January 2, 2017, for $32,600. Calculate the amount of the resulting gain or loss and prepare the journal entry for the sale. Where would the gain or loss appear on the income statement?

In: Accounting

13. Classifying Costs The following is a list of costs incurred by several businesses: Classify each...

13. Classifying Costs The following is a list of costs incurred by several businesses: Classify each of the following costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a. Cost of fabric used by clothing manufacturer b. Maintenance and repair costs for factory equipment c. Rent for a warehouse used to store raw materials and work in process d. Wages of production quality control personnel e. Oil lubricants for factory plant and equipment f. Depreciation of robot used to assemble a product g. Travel costs of marketing executives to annual sales meeting h. Depreciation of copying machines used by the Marketing Department i. Fees charged by collection agency on past-due customer accounts j. Electricity used to operate factory machinery k. Maintenance costs for factory equipment l. Pens, paper, and other supplies used by the Accounting Department in preparing various managerial reports m. Charitable contribution to United Fund n. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules o. Fees paid to lawn service for office grounds upkeep p. Cost of sewing machine needles used by a shirt manufacturer q. Cost of plastic for a telephone being manufactured r. Telephone charges by president’s office s. Cost of 30-second television commercial t. Surgeon’s fee for heart bypass surgery u. Depreciation of tools used in production v. Wages of a machine operator on the production line w. Salary of the vice president of manufacturing operations x. Factory janitorial supplies

In: Accounting

closing entries

closing entries

In: Accounting

Bank reconciliation and entries OBJ. 5 The cash account for American Medical Co. at April 30...

Bank reconciliation and entries OBJ. 5 The cash account for American Medical Co. at April 30 indicated a balance of $334,985.
The bank statement indicated a balance of $388,600 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $61,280.
b. A deposit of $42,500, representing receipts of April 30, had been made too late to appear on the bank statement.
c. The bank collected $42,000 on a $40,000 note, including interest of $2,000.
d. A check for $7,600 returned with the statement had been incorrectly recorded by American Medical Co. as $760. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
e. A check drawn for $240 had been erroneously charged by the bank as $420.
f.Bank service charges for April amounted to $145.

In: Accounting

JustKitchens Inc. provides services to restaurants and hotels. The company supplies paper products, tableware, cookware, restaurant...

JustKitchens Inc. provides services to restaurants and hotels. The company supplies paper products, tableware, cookware, restaurant and kitchen equipment, and cleaning supplies. On January 2, 2017, Just- Kitchens enters into a contract with a local restaurant chain to provide its services for 3 years at a cost of $10,000 per year. The restaurant chain pays the total contract fee on January 2, 2017. JustKitchens’s stand-alone selling price is also $10,000 per year.

After 2 years, the restaurant asks to modify the contract. On January 2, 2019, the companies agree to reduce the fee for the third year to $9,000 in exchange for extending the contract for 2 additional years at a fee of $11,000 per year. This modification is agreed to by both parties, and on that date the restaurant chain pays for the additional 2 years of service and deducts $1,000 for the adjustment to the original contract. The $11,000 fee for the additional years is the same as JustKitchens’s stand-alone price.

Required:
1. How should JustKitchens account for the contract modification?
2. Prepare the journal entries that JustKitchens would make over the life of the contract.
CHART OF ACCOUNTS
JustKitchens Inc.
General Ledger
ASSETS
111 Cash
121 Accounts Receivable
141 Inventory
152 Prepaid Insurance
181 Equipment
198 Accumulated Depreciation
LIABILITIES
211 Accounts Payable
231 Salaries Payable
250 Unearned Revenue
261 Income Taxes Payable
EQUITY
311 Common Stock
331 Retained Earnings
REVENUE
411 Service Revenue
EXPENSES
500 Cost of Goods Sold
511 Insurance Expense
512 Utilities Expense
521 Salaries Expense
532 Bad Debt Expense
540 Interest Expense
541 Depreciation Expense
559 Miscellaneous Expenses
910 Income Tax Expense

How should JustKitchens account for the contract modification?

The contract modification should be accounted for with a cumulative catch-up adjustment or prospectively?

Prepare the journal entries that JustKitchens would make over the life of the contract. Assume all annual year-end entries are made on December 31. Additional Instruction

PAGE 2017 (4 Journal Entries) PAGE 2018 (2 Journal Entries) PAGE 2019 (4 Journal Entries) PAGE 2020 (2 Journal Entries) PAGE 2021 (2 Journal Entries)

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In: Accounting

Subjects