User Account

All Pages

The company issued no par common stock

Assignment Help Accounting Basics
Reference no: EM13868993

The Slattery Company was formed on January 1, 2010 to build a single product. The company issued no  par common stock on that date for $300,000 cash. The product costs $20 to make, all of which is paid in cash at the time of production. The company sells each unit of the product for $35 on credit and incurs sales commissions per unit of $5 cash. In 2010 the company produced 10,000 units, shipped 9,000 units, and received payment for 8,000 units.

Required:
1. Prepare the 2010 income statement and ending balance sheet under each of the following methods:
a. Revenue recognition at the time of sale (shipment)
b. Revenue recognition during production
c. Revenue recognition at the time of cash receipt
2. Which method provides the most useful information to users? Under what circumstances would the other methods provide more useful information?
3. In 2011 the company produced 15,000 units, shipped 16,000 units, and received payment for 17,000 units. What conclusion can you make about the balance in Retained Earnings on December 31, 2011 for each method of revenue recognition? 

Reference no: EM13868993

Questions Cloud

Classify the fund balance as unassigned : A balance sheet, and  a budgetary comparison schedule Classify the fund balance as Unassigned
What is the probability that none of keyboards are defective : Judging from recent experience, 5% of the computer keyboards produced by an automatic, high-speed machine are defective. If six keyboards are randomly selected, what is the probability that none of the keyboards are defective?
Prepare an appropriations ledger, using columns : Prepare an appropriations ledger, using columns for Encumbrances (Dr. and Cr.) Expenditures and Available Balance.
Differentiate between various theoretical explanations : Differentiate between various theoretical explanations for delinquent behavior
The company issued no par common stock : The Slattery Company was formed on January 1, 2010 to build a single product. The company issued no  par common stock on that date for $300,000 cash.
Examine the underlying historical and economic reasons : Examine the underlying historical and economic reasons
Write a essay about writing for life : writing for life
The journal entries to the appropriations ledger charge : Post the appropriation amount and the journal entries to the appropriations ledger Charge all expenditures to Supplies and equipment Make sure your final posting shows the remaining amount available for spending.
Write a sentence that interprets the p value : Is the study result statistically significant? Write a sentence that interprets the p value of 0.03 in relation to the study results. Use 0.03 in your sentence.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What does the following mean 1 accounts payable pertains to

what does the following mean? 1. accounts payable pertains to merchandise creditors 2. all operating expenses except

  In august 2011 netflix announced significant changes to its

in august 2011 netflix announced significant changes to its pricing plans. the new plans separate dvd-only

  When the allowance method of recognizing bad debt expense

1. an operating cyclea. is twelve months or less in lengthb. is the average time required for a company to collect its

  Consider the advantages of performing dual tests what are

consider the advantages of performing dual tests. what are some examples of dual tests that you might normally

  Additional capital stock was issued or dividends distributed

Net income (or net loss) during 2010, assuming that as of December 31, 2010, assets were $960,000, liabilities were $156,000, and no additional capital stock was issued or dividends distributed.

  Hiawatha corp is considering the purchase of a new piece of

hiawatha corp is considering the purchase of a new piece of equipment. the cost savings from the equipment would result

  Compute sagaworths net cash flow from operating activities

compute sagaworths net cash flow from operating activities under the direct method. net loss 380000. depreciation

  Why is there a mandatory duty to bargain in

1. why is there a mandatory duty to bargain in labor-management negotiations when such a duty does not exist elsewhere

  What amount should charge against income

The market under governmental order because of a potential health hazard in the product. What amount should Koll charge against income during 2011, assuming amortization is recorded at the end of each year?

  Suppose the peoples bank of china wishes to peg the rate of

suppose the peoples bank of china wishes to peg the rate of exchange of its currency the yuan in terms of the u.s.

  Assume the same facts stated in the previous question which

1. in 2013 lasheca will have taxable income of approximately 50000. in 2013 lasheca will also have a long-term

  Based on this information what is the amount and percentage

the cash and accounts receivable balances for a company are provided below20122011cash6240060000accounts receivable

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