Questions
Buffalo Ranch & Farm is a distributor of ranch and farm equipment. Its products include small...

Buffalo Ranch & Farm is a distributor of ranch and farm equipment. Its products include small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company Internet site. However, given some of its specialty products, select farm implement stores carry Buffalo’s products. Pricing and cost information on three of Buffalo’s most popular products are as follows.

Item Stand-Alone Selling Price (Cost)
Mini-trencher $2,900 ($1,640)
Power fence hole auger 984 ($656)
Grain/hay dryer 12,090 ($9,020)


Respond to the requirements related to the following independent revenue arrangements for Buffalo Ranch & Farm. IFRS is a constraint.

On January 1, 2020, Buffalo sells augers to Mills Farm & Fleet for $39,360. Mills signs a six-month note at an annual interest rate of 12%. Buffalo allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Buffalo estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Buffalo’s costs to recover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entries for Buffalo on January 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

January 1, 2020

(To record sale on account)

January 1, 2020

(To record cost of goods sold)

On August 10, 2020, Buffalo sells 19 mini-trenchers to a farm co-op in western Canada. Buffalo provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Buffalo compared with the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly uncertain that the benchmark will be met.

Prepare the journal entries for Buffalo on August 10, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Buffalo sells three grain/hay dryers to a local farmer at a total contract price of $38,000. In addition to the dryers, Buffalo provides installation, which has a stand-alone sales value of $520 per unit installed. The contract payment also includes a $1,170 maintenance plan for the dryers for three years after installation. Buffalo signs the contract on June 20, 2020, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2020, and full payment is made to Buffalo.

Prepare the journal entries for Buffalo in 2020 related to this arrangement as well as any adjusting journal entries at its December year end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)

On April 25, 2020, Buffalo ships 80 augers to Farm Depot, a farm supply dealer in Alberta, on consignment. By June 30, 2020, Farm Depot has sold 50 of the consigned augers at the listed price of $984 per unit. Farm Depot notifies Buffalo of the sales, retains a 10% commission, and remits the cash due to Buffalo.

Prepare the journal entries for Buffalo and Farm Depot for the consignment arrangement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

In: Accounting

You are a database designer and data analyst working for the hypothetical employer, Park University. The...

You are a database designer and data analyst working for the hypothetical employer, Park University. The University over the last few years has provided faculty and staff needed technology to support various job functions but is having some trouble tracking such technology to ensure the program is cost-effective.   In other words, the University Controls Department is having difficulty locating inventories and associated invoicing information. With the lack of this important information, the University Controls department has a very difficult time locating and tracking released technology which has the intended purpose of being an asset to assigned employees and departments.

The University Controls department has a Technology Asset Management System currently designed and implemented using Microsoft Access; however, the Chief Information Officer (CIO) of Park University needs some ideas of possible reasons the current Technology Asset Management System designed in Microsoft Access is not currently tracking technology assets as intended.

In a memo style response to the Chief Information Officer (CIO), share-based on your knowledge learned about databases using experience and research, some possible and or hypothetical reasons why the existing database, in this case, is not working as intended?

In: Computer Science

Xonics Graphics, Inc., is evaluating a new technology for its reproduction equipment. The technology will have...

Xonics Graphics, Inc., is evaluating a new technology for its reproduction equipment. The

technology will have a three-year life, will cost $1,000, and will have an impact on cash

flows that is subject to risk. Management estimates that there is a fifty-fifty chance that the

technology will either save the company $1,000 in the first year or save it nothing at all. If

nothing at all, savings in the last two years would be zero as well. Even here there is some

possibility that in the second year an additional outlay of $300 would be required to

convert back to the original process, for the new technology may decrease efficiency.

Management attaches a 40 percent probability to this occurrence if the new technology

“bombs out” in the first year. If the technology proves itself in the first year, it is felt that

second-year cash flows will be $1,800, $1,400, and $1,000, with probabilities of 0.20, 0.60,

and 0.20, respectively. In the third year, cash flows are expected to be either $200 greater

or $200 less than the cash flow in period 2, with an equal chance of occurrence. (Again,

these cash flows depend on the cash flow in period 1 being $1,000.)

Book: fundamentals-of-Financial Management_van-horne_wachowicz_13ed

In: Finance

In the mid-2010's, the net worth of the average white family was how much compared to...

  1. In the mid-2010's, the net worth of the average white family was how much compared to the average black family?

    Three times as much

    Eight times as much

    Half as much

    They are roughly the same.

In: Economics

Using the Levett-Jones et al. (2010) article and additional evidence based nursing literature discuss the importance...

Using the Levett-Jones et al. (2010) article and additional evidence based nursing literature discuss the importance of clinical reasoning in relation to preventing patient deterioration and maintaining safe nursing practice.

In: Nursing

What is the inclusion criteria in the JONA article "Predicting Patient Satisfaction With Nurses' Call Light...

What is the inclusion criteria in the JONA article "Predicting Patient Satisfaction With Nurses' Call Light Responsiveness in 4 US Hospitals? Issue: Volume 40(10), October 2010, pp 440-447

In: Nursing

Explain the impact of the new monetary policy actions on individuals and businesses within the economy...

Explain the impact of the new monetary policy actions on individuals and businesses within the economy by integrating the macroeconomic data and principles.

Specifically, what was the result of the expansionary monetary policies in place from 2000 - 2010 ?

In: Economics

Write a class in Java called 'RandDate' containing a method called 'getRandomDate()' that can be called...

Write a class in Java called 'RandDate' containing a method called 'getRandomDate()' that can be called without instantiating the class and returns a random Date between Jan 1, 2000 and Dec 31, 2010.

In: Computer Science

Using regression in excel to predict future population. Year Population 2007 301.23 2008 304.09 2009 306.77...

Using regression in excel to predict future population.

Year Population
2007 301.23
2008 304.09
2009 306.77
2010 309.32
2011 311.56
2012 313.83
2013 315.99
2014 318.3

In: Statistics and Probability

Need assistance with this assignment. Read the Boffetta et al. (2010) article. Identify any potential threats...

Need assistance with this assignment.

Read the Boffetta et al. (2010) article. Identify any potential threats to internal or external validity in the article. Do you notice any potential problems with the conclusions?

In: Psychology