Prepare journal entries for Hodge to record

Assignment Help Financial Accounting
Reference no: EM133100382

Question - Hodge technology Ltd signs a contract on 1 July 2020 with PNG telecom LTD to provide and service switching equipment for a new exchange. The contract provides for 4 annual payments (in arrears) of $100,000 on 30 June each year. If sold separately the equipment would have a safe price of $300,000 and a 4 year service contract would cost $100,000. The equipment is shipped immediately and if PNG telecom Ltd borrowed the money from the local bank and the interest rate would be 8% which indicates a low credit risk. Hodge has a 30 June year end. Prepare journal entries for Hodge to record the above on:

1. 1 July 2020

2. 30 June 2021

Reference no: EM133100382

Questions Cloud

How many pounds will jack have : a. How many pounds will Jack have? b. What is the percentage cost of his transaction?
What is the total amount of noncurrent assets : The classified balance sheet for a company reported current assets of $811,925, total liabilities of $399,770, What is the total amount of noncurrent assets
Current health of the canadian economy : Write a proper paragraph outlining your opinion on the current health of the Canadian Economy (Focus on the situation created by COVID-19
Ethics code of international federation of accountants ifac : Why should a professional accountant be aware of the Ethics Code of the International Federation of Accountants IFAC? 9th edition
Prepare journal entries for Hodge to record : The contract provides for 4 annual payments (in arrears) of $100,000. Prepare journal entries for Hodge to record the above on 1 July 2020
Describe concept of organizational culture : Describe concept of organizational culture. Include how organizational culture can be used to effectively lead and what factors can contribute to that culture
What was the dollar amount of the premium paid for each bond : Assume the Government of Canada Yield was 1.035%. What was the dollar amount of the premium paid for each bond
Operation management and enhance productivity : Improve the operation management and enhance productivity and performance with a focus on finance performance and people
Appreciate and value diversity : Complete the Learn: Self-Assessment: Do You Appreciate and Value Diversity? exercise located in this week's Learning Activities folder.

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