Cullumber Company sells goods on credit that cost $306,500 to Gary Company for $400,500 on January 2, 2025. The sales priceincludes an installation fee, which has a standalone selling price of $47,000. The standalone selling price of the goods is $353,500. Theinstallation is considered a separate performance obligation and is expected to take 6 months to complete.(a)Prepare the journal entries (if any) to record the sale on January 2, 2025. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Listall debit entries before credit entries.)DateJan. 2, 2025Account Titles and ExplanationDebitCredit

Step 1:In preparing journal entries to record the sale of Columber Company to Gary Company,…

Answered: Cullumber Company sells goods on credit…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $40,000. The standalone selling price of the goods is $370,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete. Instructions a. Prepare the journal entries (if any) to record the sale on January 2, 2020. b. Shaw prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Shaw recognize related to its sale to Ricard?
Ivanhoe Company sells on credits goods that cost $304,500 to Ricard Company for $418,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $36,000. The standalone selling price of the goods is $382,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete.(a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account titles are automatically indented when 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 Jan. 2, 2020 enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the…
Sheridan Company sells goods that cost $320,000 to Ricard Company for $403,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $38,500. The standalone selling price of the goods is $365,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete.(a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (b) Sheridan prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Sheridan recognize related to its sale to Ricard?
Wildhorse Company sells on credits goods that cost $309,500 to Ricard Company for $415,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $45,500. The standalone selling price of the goods is $370,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete.(a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account titles are automatically indented when 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 Jan. 2, 2020 enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record…
Sarasota Company sells goods that cost $324,000 to Ricard Company for $442,800 on January 2, 2025. The sales price includes an installation fee, which has a stand-alone selling price of $43,200. The standalone selling price of the goods is $399,600. The installation is considered a separate performance obligation and is expected to take 6 months to complete (installation was completed on June 18, 2025). (a) How much revenue does Sarasota record on January 2, 2025? Revenue $
Wildhorse Company sells on credits goods that cost $302,500 to Ricard Company for $415,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $43,000. The standalone selling price of the goods is $372,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete.
Bridgeport Company sells goods that cost $258,000 to record company for $352,600 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $34,400. The standalone selling price of the goods is $318,200. The installation is considered a separate performance application and is expected to take six months to complete (installation was completed on June 18, 2025). How much income should Bridgeport report related to its sale to Ricard in its income statement prepared for the quarter ended March 31, 2025? Gross profit:
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Ahmed sells goods costing $150,000 to Samad for $210,000 on January 2, 2020, including installation fee of $18,000. The fair value of goods is $185,000. The installation is expected to take 6 months. Prepare the journal entry to record the sales. How much sales revenue should be recording for the first quarter, ending on March 31, 2020?
A company delivers goods to the customer for $389,000 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $140,000. The standalone selling price of the goods is $360,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. How much Unearned Service Revenue will the company record on Jan. 2, 2020? (If the company should not record any Unearned Service Revenue on Jan. 2, 2020, then enter 0.) (Do not round your answer in any part of the computation.)
(Allocate Transaction Price) Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2017. The sales price includes an installation fee, which has a standalone selling price of $40,000. The standalone selling price of the goods is $370,000. The installation is considered a separate performance obligation and is expected to take6 months to complete.Instructions(a) Prepare the journal entries (if any) to record the sale on January 2, 2017.(b) Shaw prepares an income statement for the first quarter of 2017, ending on March 31, 2017 (installation was completed on June 18, 2017). How much revenue should Shaw recognize related to its sale to Ricard?

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