On November 20, 2011, Green Bay Electronics agreed to manufacture and supply 750 electronic control units used
Question:
Assume Green Bay uses a perpetual inventory system.
Required:
1. Prepare the entry by Green Bay to record receipt of the deposit during
2011. How would the deposit be reported in the financial statements at the end of 2011?
2. Prepare the entry by Green Bay to record the delivery of 200 units during 2012. How would the deposit be reported in the financial statements at the end of
2012? Wausau pays in cash upon delivery for units not covered by the deposit.
3. Prepare the entry by Green Bay to record the delivery of 300 units during 2013. Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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