User Account

All Pages

Prepare the journal entries to record monthly collections

Assignment Help Accounting Basics
Reference no: EM132752772

Question - On September 30, 19X7, Harmony Instruments, Inc,. sold for $1,600 a piano costing $1,000. The down payment was $160, and the same amount was to be paid at the end of each succeeding month. Interest at 1% a month was charged on the unpaid balance of the contract, with payments applying first to accrued interest and the balance to principal.

After paying a total of $640, the customer defaulted. The piano was repossessed in February, 19X8. It was estimated that the piano had a value of $560 on a depreciated cost basis. The company uses perpetual inventory accounts and enters the total deferred gross profit at the time of sale.

Required - Prepare the journal entries to record:

(1) The installment sale.

(2) The monthly collections.

(3) The recognition of realized gross profit at the end 19X7.

(4) The repossession in 19X8.

Reference no: EM132752772

Questions Cloud

Discuss management strategy : Discuss a management strategy used to retain or increase cash. How are the applications of these strategies similar or different for businesses and individuals?
What entry must Sue Carpet Service make on December : On October1, 2020 Sue's Carpet Service borrows $ 125.000 from the Bank on a 3-month, $ 125.000, 8% note. What entry must Sue's Carpet Service make
Calculate crane pension expense : Calculate Crane's pension expense for 2020 assuming that the company follows IFRS. Crane Corp. provides a defined contribution pension plan for its employees.
Role of ethics and the various internal control processes : Appraise the risks inherent in computer-based systems/ERP, including the role of ethics and the various internal control processes that need to be in place
Prepare the journal entries to record monthly collections : After paying a total of $640, the customer defaulted. The piano was repossessed in February, 19X8. Prepare the journal entries to record monthly collections
Different types of behavioral leadership approaches : Describe at least three different types of behavioral leadership approaches.
Should the buses be sold now or kept in reserve : Prepare a net present value analysis of the two options for the five full-size buses. Should the buses be sold now or kept in reserve?
Explain capital expenditures decline : Can the recommended offering price of $28 per share for Netscape's stock be justified? In valuing Netscape, make the following assumptions:
What amount that she should save at the end of each quarter : What amount that she should save at the end of each quarter to attain her goal, if she can earn interest at 11% per year, compounded quarterly

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the necessary journal entry to record error

Blue Corporation began operations on January 1, 2020. Prepare the necessary journal entry to record the correction of the accounting error

  Determine the nominal value of hasit and chandni portfolio

Using the weighted return (rounded to the nearest whole percent) from question 2 and the Investment Return Calculator, determine the nominal value of Hasit.

  Karl won 5000 in the state lottery he has been playing the

requireduse the following information to complete karl and ellie fredericksons 2011 federal income tax return. if

  What ethical implications of consolidated returns at state

What are some of the practical and ethical implications of consolidated returns at the state, federal, and international levels? Support your post with research

  Prepare journal entry to record the sale

On June 16 202x Romela Company sold 100 air conditioning units. The sale price for each unit is P45,000. All of sales are subject to terms 210, n/30.

  Caspian creations sells wooden boxes from a kiosk in a mall

caspian creations sells wooden boxes from a kiosk in a mall. fixed costs are 2500 per month and the variable cost is

  Unit selling prices and unit costs

The production department has met all production requirements for the current month and has an opportunity to produce additional units of product with its excess capacity. Unit selling prices and unit costs for three different drill models are as ..

  What is the operating cash flow

A company has projected sales of $542,000, costs of $389,300, depreciation of $82,400, and a tax rate of 31%. What is the operating cash flow

  Calculate Carey basis in the property received

The other party to the exchange assumes a mortgage loan on Carey's property of $50,000. Calculate Carey basis in the property received

  Determine the unit cost for the month for materials

There was no units in process at the beginning or at the end of the month, and 20,000 units were completed. Determine the unit cost for the month for materials

  Compute the equivalent units of production

Manufacturing costs: Work in process, September 1, $16,000; materials added $60,300; Compute the equivalent units of production

  Examine given situations for Book field Welding Services

Journalizing adjusting entries Consider the following situations for Book field Welding Services: Depreciation for the current year includes equipment, $2,700.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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