Prepare the journal entry for denim inc to record the sale

Assignment Help Accounting Basics
Reference no: EM133173664

Question - Denim, Inc. entered into a contract to sell equipment to Levi LLC. on October 1, 2021. Along with the equipment, Denim Inc. will provide one-year maintenance services on an as-needed basis, beginning once the equipment is installed. Denim offers similar services to other customers that purchased equipment sold by other vendors for $20,000. Denim Inc. will also provide installation services at no additional cost, a service that Denim Inc. typically charges $10,000. The equipment normally sells for $170,000 on its own. For the package deal, Levi LLC. agrees to pay a total of $180,000. The equipment was delivered and installed on November 1, 2021. Levi LLC. paid the entire invoice in cash on the delivery and installation date.

1. How much revenue should Denim Inc. allocate to the various performance obligations in the above contract (round to the nearest dollar, if needed)?

2. Prepare the Journal Entry for Denim Inc. to record the sale. Assume the equipment cost Denim Inc. $100,000 to manufacture.

Reference no: EM133173664

Questions Cloud

What is the value of the gds ratio : If you have existing debt of $300/month and a mortgage amount of $1100, what is the value of the GDS (Gross Debt Service) ratio
Draw the types of b2b marketplaces : a) Draw the FOUR (4) types of B2B marketplaces.
Circular economy to zara fashion clothing sustainability : Zara is transforming into a circular fashion company to be sustainable and environmentally friendly.
Calculate the portfolio weightage of alexia investment : Calculate the portfolio weightage of Alexia investment, if she bought 100 shares of Stock Z at RM13 per share and 350 shares of Stock X at RM7.50 per share
Prepare the journal entry for denim inc to record the sale : Prepare the Journal Entry for Denim Inc. to record the sale. Assume the equipment cost Denim Inc. $100,000 to manufacture
Why does maslow hierarchy of needs matter : Watch the videos Herzberg's Jumping for the Jelly Beans (pt. 1) and Why does Maslow's Hierarchy of Needs Matter?. Now, consider what you read in your assigned t
Making a suggestion for potential job : Step two: Comment on another student's post by making a suggestion for another potential job or career in which the skills they describe could be useful.
What is meant by ethical business practice : Tata Steel is the second largest steel producer in Europe and has its main steelmaking plants in the UK and Holland. It supplies steel andrelated services to ma
How the product demand affected by covid-19 content : Discuss, how the products demand is affected by Covid-19? What measures you would suggest to the company in order to increase the demand for the product in the

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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