Prepare the adjusting journal entry required at december

Assignment Help Accounting Basics
Reference no: EM133067622

Question - TX Inc. start selling training contracts with the sale of their software system in one bundle price whereby the customer pays a monthly fee for 36 months. The monthly fee is due at the beginning of each month. During that time, the company provides any training on the software as required by the customer. It is expected that training costs incurred will be incurred evenly over time. Any training costs incurred to date have been charged to the Purchases of Merchandise account. Assume that the effects of discounting are not material (i.e. you do not have to discount the cash flows).

The company sold 2 of these contracts during 2021 as follows:

 

Contract A

Contract B

Date of contract

April, 2021

August 1, 2021

Stand-alone selling price of equipment

$155,000

$275,000

Stand-alone selling price of training

$19,000

$28,000

Monthly fee charged to the customer

$5,000

$8,250

Recorded the monthly revenues in the revenue account.

Required - Prepare the adjusting journal entry required at December 31, 2021.

Reference no: EM133067622

Questions Cloud

Understanding of the factors cause a change in supply : 1. Show your understanding of the Factors cause a Change in Supply by means of providing an example of a real world example
Company minimizes the risks involved : BHP Billiton Ltd has no operation in Switzerland but considers issuing a 20-year Swiss franc-denominated bond because of the lower coupon rate in Switzerland th
B2b-pattern e-marketing processes : B2B-pattern e-marketing processes that entail exchanges among business/organization customers
Discuss key economic issues for consideration : There are signs the tide is turning. In the United States, the dominance of a handful of technology companies like Facebook, Google, and Amazon has started to r
Prepare the adjusting journal entry required at december : The monthly fee is due at the beginning of each month. Prepare the adjusting journal entry required at December 31, 2021
Difference between inflation and tax : What is the difference between inflation and tax?
Calculate the markets total demand : Keep in mind that management needs to recognize the demand for their product. While this is an obvious statement, it cannot be over emphasized
Find risks present in the market : 1. How do you think people's decisions are being affected by risks present in the market?
What is the expected price of this bond : The bond's par value is $1.000, and the current yield on similar bonds is 7.5%. What is the expected price of this bond using the semiannual convention

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the number of equivalent units

Question - EUP computation; normal and abnormal loss; FIFO, Determine the number of equivalent units for direct material

  Calculate the payback period

Calculate the payback period (PP), the net present value (NPV), the profitability index (PI) and the internal rate of returns for each project

  Calculate the amounts for depreciation expense

ArborGear - Business Background - Calculate the amounts for depreciation expense for each of the two types of non-current Assets: trailer and vehicles

  Difference between a single-step and multiple-step income

A new corporation issuing a common, no-par value stock for cash would include a journal entry a debit to _____.

  A business professor stated that depreciation was a huge tax

A business professor stated that depreciation was a huge tax giveaway by the government, because companies would sell buildings

  Examples of statistical sampling

What are some benefits of an auditor using statistical sampling? What are some examples of statistical sampling? Does anyone have any experience they are willing to share with the class on statistical sampling - answer 150-200 words.

  Which benefits and costs would include

You have been tasked with completing a cost-benefit analysis. Which benefits and costs would you include? How would you measure them?

  The acquisition would require an initial investment of

tapley acquisition inc. is considering the purchase of tangent company. the acquisition would require an initial

  Calculate the target cost for the new contract and cost gap

Total design costs for all 25,000 metres of cable are expected to be $900,000. Calculate the target cost for the new contract and the cost gap

  How many shares must be issued

If EC can issue common stock at market price of $80 per share, how many shares must be issued so that the company has $141 million after flotation costs to fund

  Which is true about wilma

Which is true about Wilma? Wilma owns a bakery. In 2018 she bought an oven for $10,000. In 2018 and 2019 she deducted depreciation of $3800

  Rraditional cost accounting system

Weber Corporation has used a traditional cost accounting system to apply quality control costs uniformly to all products at a rate of 15% of direct labor cost. Monthly direct labor costs for its main product is $30,000.

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