A company enters into a four year service contract at a

Assignment Help Financial Accounting
Reference no: EM13346506

A company enters into a four year service contract at a contracted price of $12,000,000 on December 31, 20x0. At that time it was estimated that the total contract costs would amount to $10,000,000.

Data relating to the contract over its four years are as follows:

                                                             20x1         20x2           20x3          20x4

Costs incurred during year                      $1,800,000  $2,400,000  $4,425,000  $2,600,000

Expected costs to complete  contract       8,200,000   6,300,000    2,875,000        -0-

Required - 
 
For each the four years, Evaluate the amount of revenues and profit/loss that will be realized.

Question 2
 
Write the journal entries for each of the subsequent transactions: 
 
June 2    Sold 200 unit of product A605 to Chancellor Industries for $30 each. Terms 1/10, n40
 
June 4    Chancellor Industries returned 35 units. The units were restocked.
 
June 11  Received a cheque from Chancellor for payment of the June 2 sale.
 
June 14  Sold 500 units of product A505 to Newman Industries for $75 each. Terms 1/10, n40.
 
June 18  Newman Industries informs us that some of the items sold on June 14 are  damaged. They will keep the items but are requesting a credit note. After inspecting the units, a credit note of $5,000 is issued.

July 27    A cheque is received from Newman Industries.

Question 3

Simmons Company engaged in the following transactions in July.

July 1 Sold merchandise to Bernice Wilson on credit, terms 2/10, n/30, FOB shipping point, $2,100 (cost, $1,260).

July 3 Purchased merchandise on credit from Simic Company, terms n/30, FOB shipping point, $3,800.

July 4 Accepted for full credit a return from Bernice Wilson and returned merchandise to inventory, $200 (cost, $120).

July 5 Paid Banner Freight for freight charges on merchandise received, $290.

July 6 Purchased merchandise on credit from Hayes Supply Company, terms n/20, $636.

July 8 Purchased merchandise on credit from Salinas Company, terms n/30, FOB shipping point, $3,600, which includes $200 freight costs paid by Salinas Company.

July 9 Received payment from Bernice Wilson (July 1 purchase)

July 12 Returned some of the merchandise received on July 3 for credit, $600.

July 16 Received a $100 credit memo for the  July 6 purchase for minor defects.

The merchandise was not returned.

July 17 Sold merchandise for cash, $1,000 (cost, $600).
 
July 24 Paid Simic Company for purchase of July 3. 
 
Required - 

1. Prepare general journal entries to record the transactions, assuming use of the periodic inventory system.

2. Prepare general journal entries to record the transactions, assuming use of the perpetual inventory system.

Reference no: EM13346506

Questions Cloud

Question 1the subsequent set of data is the mark for 30 : question 1the subsequent set of data is the mark for 30 students in a final exam.a use spss commands analyze -gt
The supply chain management team at cwc is considering : the supply chain management team at cwc is considering whether the current production and distribution network is still
In a shell-and-tube heat exchanger one fluid passes through : in a shell-and-tube heat exchanger one fluid passes through a central tube while another fluid flows through an outer
Task - 1i- describe how test flumes and associated : task - 1i- describe how test flumes and associated equipment are used to assess and confirm hydraulic behaviour in open
A company enters into a four year service contract at a : a company enters into a four year service contract at a contracted price of 12000000 on december 31 20x0. at that time
Create a finite-state machine design to turn your fpga : create a finite-state machine design to turn your fpga development board into a simple programmable music box. the
Provide an executive summary of the individual researchwhat : provide an executive summary of the individual research.what were the key conclusions of the research?identify what you
Andrew brian colin diana and elizabeth were the directors : andrew brian colin diana and elizabeth were the directors of gemsales pty ltd a company engaged in the business of
Each candidate in this class is to identify a teacher in : each candidate in this class is to identify a teacher in herhis school who is willing to participate in a supervisory

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd